CCTV.com - CNTV English - CCTV News

China to make yuan more flexible

06-21-2010 11:31 BJT Special Report: China to Reform RMB Exchange Rate Regime |

Watch Video

Play Video

China has announced plans to further reform its exchange rate mechanism. The People's Bank of China says that it will allow the yuan to adjust against a basket of currencies. However, it's ruled out an immediate one-off rise in the exchange rate.

The central bank says it will keep the yuan basically stable at a reasonable and balanced level. It will adjust the Renminbi exchange rate based on the floating bands previously announced in the interbank foreign exchange market. The bank says that given China's close ties with a number of trade partners, the yuan will be pegged to a basket of currencies. It stressed that the US dollar will not be the only gauge for assessing the exchange rate.

The central bank says it wants to promote China's balance of international payments, while safeguarding the stability of the country's economy and financial markets.

The move is in line with China's long-term fiscal plan. It aims to support the economic structure adjustments required for sustainable growth.

The central bank says the floating currency exchange rate will help guide resources to service sector, which will upgrade the industry. It will also reduce China's trade imbalance and reliance on exports. The bank says a flexible exchange rate regime will help curb inflation and asset bubbles, and create a more favorable international development environment for China.

Editor:Xiong Qu |Source: CCTV.com

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program