Center

Capital to be released slowly

(Xinhua)
Updated: 2007-04-05 16:02

Many Western trade partners, including the United States, have been pushing China to allow rapid appreciation of the yuan, alleging its undervaluation has given China an unreasonable export price advantage.

The yuan has appreciated more than six percent since China scrapped the peg of 8.28 yuan to US$1 and allowed it to float within a daily 0.3 percent band from the official central parity rate on July 21, 2005.

Wu said on Sunday that the government would continue to improve the exchange rate system and allow more flexibility, but imbalances in world trade should not be blamed on the yuan exchange rate.

She also said the government would reform the export rebate system and customs policies to address the trade surplus, while maintaining a reasonable level for the exchange rate.