China currently has no need of adjusting its exchange rate and the recent RMB appreciation does not indicate any changes of its foreign exchange policy, said Zhou Xiaochuan, Governor of the People's Bank of China and Chairman of the Asian Consultative Council, the Bank of International Settlements (BIS).

He added that China would probably initiate more forex swap business as a move to push forward its financial reforms.

He made the remarks in Shanghai where he presided over the special conference for BIS Asian-Pacific central bank governors and BIS Asian Consultative Council Feb. 12 to 13.

The meeting focused on the global financial situation, the development of corporate bonds market in Asia, and further cooperation between the BIS and Asian central banks.

The day after the meeting, PBoC Deputy Governor Wu Xiaoling said at China-US Business Forum on Feb. 14 that the momentum of the recent upward movement of RMB came from the market instead of intervention from the central bank.

Wu also argued that the exchange rate of the Chinese currency were not the reason for the country's expanding trade surplus but can be a tool to leverage the foreign trade.

The same day on the same occasion Vice Commerce Minister Yi Xiaozhun announced that 58 percent of China's exports were made by foreign-funded enterprises in China and they held 83 percent of the country's total trade surplus in 2005.

Also yesterday in the response to the US pressure on China for further relaxing the Chinese currency policy, Chinese Foreign Ministry declared China did not change its determination in advancing the reform on its exchange rate system and would push the reform forward in the spirit of serving the global and Chinese economy.

By People's Daily Online

By People's Daily Online