2004-11-20 18:00:11 G20 MEETING China's Zhou: too soon to talk about loosening yuan/dlr peg UPDATE (Updates with Zhou quotes, background)
BERLIN (AFX) - People's Bank of China governor Zhou Xiaochuan said it is too soon to talk about moves to loosen the yuan/dollar peg
China's currency has been pegged at about 8.3 yuan to the US dollar for the past ten years, and G7 countries have been pressing China to move to a more flexible exchange rate regime
"It is still not the stage to talk about a specific technical arrangement," Zhou told journalists at the G20 finance ministers and central bank governors meeting
China has conceded that there is a need to revalue the yuan but officials say this will take time
"Now China is in the preparation stage. We are prepared to follow financial institutional reforms to develop the financial markets, especially the foreign exchange market," Zhou said
"We are reviewing our old foreign exchange control systems," he added
The US has been calling for the yuan's value to be set by the market or at least to vary within a large band
Washington has sometimes criticised China's fixed-exchange rate peg to the dollar, seeing a yuan appreciation as one possible solution to the huge US current account deficit
But the Chinese central bank has repeatedly said it will maintain the basic stability of the yuan's exchange rate around a "rational and balanced level."
China´s Zhou: too soon to talk about loosening yuan/dlr peg
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22-11-2004 02:30
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