Central bank vows to push ahead with reform
(AFP)
Updated: 2005-11-18 21:20

The central bank pushed through a 2.1 percent revaluation of the yuan on July 21 despite opposition from within the government, in particular the Ministry of Commerce, warning a stronger currency would hit Chinese exporters.

Seeking to carry on reform in the face of the demands of multiple interest groups, the central bank also said Friday it is willing to listen to positive suggestions about its exchange rate mechanism.

Xinhua news agency quoted an unidentified central bank official as saying that the reform process is aimed at creating a more flexible exchange rate regime that gives a greater role to market forces.

The Xinhua report did not give any particular details of suggestions that would be considered.

"It is our unalterable target to maintain a well-managed floating exchange rate mechanism based on market demand and to keep the exchange rate stable at a balanced and reasonable level," the official said.

A series of measures have also been announced following the revaluation, including allowing new derivative products and adding more players in the country's foreign exchange market.

These are relatively new tones from the central bank, officially the People's Bank of China.

It reflects how the bank, once a staunch guardian of the status quo, has gradually seen its role change over time.