ABSTRACT

The Renminbi's long-term stability derives mainly from the fact that the state possesses a large stock of commodities which is put on the market at stabilized prices. This is a peculiar feature distinguishing the socialist from the capitalist economic system. Important condition for the Renminbi maintaining long-term stability is to work out a state budget under the socialist system, a budget which is steady and sound and in which revenue and expenditure are balanced. "The correctness or incorrectness of the ideological and political line decides everything." The long-term stability of the Renminbi is a fruit of Chairman Mao's proletarian revolutionary line triumphing over the revisionist line of Liu Shao-ch'i and Lin Piao. The long-term stability of the Renminbi is due to the state's centralized and unified control of the issuing of notes through adjusting, in a planned way, the amounts of money put into circulation and to be called in.