2016年CRI NDRC Defies Speculation of RMB Exchange Rate Volatility

A senior official with the National Development and Reform commission stresses that cross-border capital flow is changing within a reasonable range. 

Zhao Chenxin says the RMB exchange rate against a basket of currencies generally remained stable and has appreciated in some ways. 

The official explains that the authority is capable of keeping the basic stability of the RMB exchange rate.

"First, China still holds the world's largest foreign exchange reserves. Second, we keep a large yearly trade surplus. Third, the internationalization of the yuan is developing at a stable pace. And the two-way fluctuation 1 of the RMB exchange rate has entered a new normal."

The official also says large-scale layoffs 2 are not an expected byproduct of China's economic restructuring thanks to sound economic fundamentals and new growth engines.

He says even though growth has slowed, China's GDP growth is still comparatively stronger than other major economies in the world. during the period of the twelfth "five-year plan," employment in China increased over 11 percent compared to the previous "five-year plan" period.

China created more than 13 million new jobs for urban residents last year, exceeding the official target.

The government aims to create at least 10 million new jobs and hold unemployment below 4.5 percent in 2015.

The latest official data showed the registered unemployment rate in China's cities was just over 4 percent at the end of 2015, unchanged from three months earlier.

The official points out that China's economy will maintain a medium-to-high growth rate this year, providing a solid basis for a steady job market.

"We have made every effort to make up for shortfalls in the economy. We will continue to foster new growth points by boosting consumption and promoting investment. The economy will grow at a medium to high pace, which will help to boost employment."

Zhao points out that the government has already issued various favorable policies to encourage entrepreneurship and innovation.

And he says he believes that these measures have performed well in creating jobs.

"The growth of market participants has been keeping a strong momentum 3 in the past year. Over 4.4 million enterprises were newly registered with a growth rate of 21.6 percent. Around 12,000 new companies are registered daily. We will further promote entrepreneurship and innovation this year and expand employment by encouraging business startups."

The economy recorded its slowest growth in 25 years in 2015, expanding 6.9 percent year on year, fueling concerns over job losses, especially in industries with excessive capacity.

Zhao acknowledged there would be redundancies in some industries but said the government would distribute funds to help workers reestablish themselves should they lose their jobs.

For CRI, this is Guo Yan.