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China has reiterated that reform of its exchange rate mechanism will be a gradual process. The central bank announced on the weekend that it planned to allow greater flexibility for the yuan exchange rate, and end the Renminbi's 23-month-old-peg to the dollar.
All over the world, China's trading partners have been anxiously awaiting Beijing's next move. But the Foreign Ministry says China's monetary policy shouldn't be politicized. It's also reaffirmed that any actions taken by China on its exchange rate would be independent and considered.
Qin Gang, Spokesman of Chinese Foreign Ministry said "What I would like to emphasize is this: we'll push for the reform of the Renminbi exchange rate mechanism and flexibility of the Renminbi exchange rate in an independent, controlled and gradual manner. This position has been clearly communicated, and remains unchanged."
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