flexibility of the yuan while keeping the exchange rate stable at a suitable and balanced level, a foreign ministry spokesman said yesterday. [reuters] a stack of 100 us dollar notes and 100 yuan notes at a foreign bank in shanghai in this september 3, 2003 file photo. china will continue to improve its currency regime and seek greater
china will continue to improve its currency regime and seek greater flexibility of the yuan while keeping the exchange rate stable at a suitable and balanced level, a foreign ministry spokesman said yesterday.
he made the remarks after the bush administration on wednesday said it would not brand china as a country manipulating its currency for unfair trade advantage.
"china has always taken a highly responsible attitude in defining its currency regime and proceeded on a path conducive to china"s economic and social development, as well as to regional economic and financial stability," liu jianchao told a news briefing in beijing.
"we will stand firm in our reform of the financial system to improve mechanisms for the renminbi exchange rate, increase the flexibility of the exchange rate , improve the ability of financial institutions to manage risks and ensure that the renminbi exchange rate remains stable and rational," liu said.
the us treasury department said beijing was moving, albeit "slowly," on currency reforms.
china ended the yuan"s decade-old peg to the us dollar last july, switching to a more flexible exchange rate system linked to a basket of world currencies. the government has allowed the yuan to rise by more than 3 per cent against the dollar since then.
"the treasury department will closely monitor china"s progress in implementing its economic rebalancing strategy... and continue actively and frankly to press china to quicken the pace of renminbi flexibility," the treasury department said in a semi-annual report on currency practices of key trading partners.
two key lawmakers lindsey graham, a south carolina republican and charles schumer, a new york democrat said on wednesday they would not seek punitive trade legislation against beijing until september 30 in order to give china more time to adopt a more flexible foreign exchange rate regime.