China will, in line with the changes in domestic and international economic situation, continue the reform of formation mechanism of the exchange rates of Chinese currency, said a senior official with the Chinese central bank on Tuesday.

Su Ning, deputy governor of the People's Bank of China, made the remarks at the Second Sino-US Relations Seminar, which opened here Monday.

Su said that the basic role of market demand and supply should be brought into play in the process of forming the exchange rates.

China reformed its exchange rate system by announcing a 2-percent revaluation for renminbi (RMB) on July 21, which is "in the long-term and fundamental interests" of China and the world and reflects the orientation and goal of China's market-oriented reform.

The RMB exchange rate, on the basis of market supply and demand and in reference to a basket of currencies, will keep basic stability on a reasonable and equal level, the central bank said.

With China's access to the World Trade Organization (WTO), the financial sector will be fully opened by the end of 2006. China should seize the opportunity to promote reforms in all sectors by removing mechanism obstacles and ultimately strengthening the international competitiveness of Chinese financial departments, Su said.

Source: Xinhua