21 Jun 2010

China pledges yuan stability

1:15 pm on 21 June 2010

China's central bank says it plans to keep the Chinese yuan stable and there will be no immediate revaluation of the currency.

The comments come a day after the bank announced plans to make the exchange rate more flexible.

But Chinese authorities have ruled out a large, one-off adjustment in the exchange rate, the BBC reports.

The yuan has been effectively pegged to the dollar, drawing criticism that China was protecting its exporters.

The United States has been particularly critical of Beijing, accusing it of keeping its currency artificially weak.

The yuan has been held at about 6.83 to the dollar since July 2008. In July 2005, it was revalued by 2.1%.

The People's Bank of China said the proposed exchange rate reform had been made possible by the global recovery.

But it appeared to rule out a major appreciation, saying there was "no basis for big fluctuations or changes".