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          China pledges to work on yuan reform
                      (Agencies)
           Updated: 2005-01-05 10:28
           China's central bank said 
Tuesday it plans to push ahead with currency reform in 2005, but repeated a 
long-standing pledge to keep the yuan stable. 

          "We will quicken the development of the forex market, actively and safely 
push ahead with reform of the renminbi exchange rate formation mechanism," the 
Xinhua news agency quoted Zhou Xiaochuan, governor of the People's Bank of 
China, as saying. 

          China would "maintain the basic stability of the renminbi exchange rate at a 
reasonable and balanced level," Zhou added. 

          Zhou, speaking at a central bank annual meeting, also said China would aim 
for broad money supply growth of about 15 percent in 2005, compared with an 
estimated 14.5-percent rise for 2004. 

          The central bank was targeting a total of 2.5 trillion yuan in new loans in 
2005, up from the estimated 2.2 trillion yuan given out last year, Zhou said. 

          The central bank would also pursue market-oriented interest rate reforms, 
Zhou said. "In 2005, the People's Bank will continue to deepen market-oriented 
interest rate reforms and give full play to the interest rate lever," Zhou said. 

          
 
          
 
          
 
          
 
           
  
 
 
 
          
 
          
           		
  
  
 
          
 
           
  
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