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China pledges to work on yuan reform
(Agencies)
Updated: 2005-01-05 10:28

"We will quicken the development of the forex market, actively and safely push ahead with reform of the renminbi exchange rate formation mechanism," the Xinhua news agency quoted Zhou Xiaochuan, governor of the People's Bank of China, as saying.

China would "maintain the basic stability of the renminbi exchange rate at a reasonable and balanced level," Zhou added.

Zhou, speaking at a central bank annual meeting, also said China would aim for broad money supply growth of about 15 percent in 2005, compared with an estimated 14.5-percent rise for 2004.

The central bank was targeting a total of 2.5 trillion yuan in new loans in 2005, up from the estimated 2.2 trillion yuan given out last year, Zhou said.

The central bank would also pursue market-oriented interest rate reforms, Zhou said. "In 2005, the People's Bank will continue to deepen market-oriented interest rate reforms and give full play to the interest rate lever," Zhou said.

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