18. CHINAS ECONOMIC in 1997. China' s foreign DEVELOPMENT AND THE change reserves today have hit more than TABILITY OF THE RENMINBI 140 billion U.S. dollars, just next to that of Japan. This enabled China to stand the As shown by Graph 1, the exchange trials of the Asian financial crisis, shield rate of the yuan(RMB) fell dramatically ing the renminbi from devaluation from 8. 7 against one dollar to around 8.3 China's effort to maintain the stability of during 1994 and 1995, and has been sta the yuan, in the long run, is beneficial ble ever since. Despite the Asian financial not only to the country's economic devel turmoil and its negative impact on China's opment but also to that of the whole economic development, China has given her pledge to maintain the stability of the renminbi s exchange rate China's refusal to devalue the yuan is rational policy based on the countrys do mestic economic conditions. Owing to 20 years of reform and opening-up, China's ss domestic product GDP )surged 363. 46 billion yuan in 1979 to 7. 48
