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No change in sight for Renminbi rate
(Agencies)
Updated: 2005-04-04 15:40

Reform of the yuan would focus on improving the exchange rate mechanism, vice governor Wu Xiaoling was quoted as saying in the official China Securities Journal.

"The renminbi (yuan) exchange rate has come under pressure, but the crucial point is not the level," Wu said at a forum in Beijing.

"Nobody can work out theoretically what is the balanced and rational exchange rate. Practically it is very hard to fix the rational level of any exchange rate."

The remarks were the latest signal from Beijing that it will not rush to overhaul its fixed-currency system, which the United States and other western countries complain makes Chinese exports unfairly cheap.

The yuan has been pegged to about 8.28 to the dollar since the mid-1990s.

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