State Administration of Foreign Exchange Vice-Director Wei Benhua said China would soon introduce new rules loosening capital controls, easing cross-border capital movement to facilitate development of China's capital markets. But full convertibility would have to wait, he said. Besides achieving IMF benchmarks — appropriate foreign exchange rate levels, effective financial regulation and adequate forex reserves ï¿½ China had to achieve its own self-imposed benchmarks. He said China had to have a healthy financial system, commercial entities that could adapt to market changes, market-oriented interest rates, a more flexible forex rate mechanism and an effective macroeconomic control system.
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