A spokesman of the People's Bank of China recently condemned a business paper report that cited an "authoritarian expert" as saying China could stand a five percent RMB revaluation a year.

The report is completely irresponsible and groundless, the spokesman pointed out.

The report said: before July 21st last year, related high-level authorities instructed the National Development and Reform Commission and the monetary policy department of the central bank to set up special panels respectively to study exchange rate reform plans. It quoted an "authoritarian expert" as saying "the final conclusion is that five percent revaluation within a year is affordable, but it must be carried out step by step. The first step can be two percent or three percent."

China's reform on RMB exchange rate formation mechanism is an important decision made in line with the needs for national reform and development by the CPC Central Committee and the State Council, and carried out carefully by the central bank, the spokesman said. But the report quotation of "authoritarian expert" and "five percent in a year" are totally groundless. Exchange rate is an issue of wide influence to which the market is highly sensitive, while the report, without earnest verification before being published, is seriously misleading, and may even create abnormal fluctuations on the market and disrupt economic and financial order.

By People's Daily Online