Central bank denies rumors of RMB revaluation
China has no specific plans or timetable to reform its foreign exchange system, a central bank spokesman said Monday, denying a weekend report that the value of the Chinese yuan will be raised by 5 percent in March.
``This is the newspaper's opinion, it isn't a central bank decision,'' the spokesman for the People's Bank of China told Dow Jones Newswires.
``Currently the bank has no specific plans for renminbi changes. There is no timetable for renminbi reform,'' said the official, speaking on condition of anonymity. Renminbi, Chinese for ``people's money,'' is another name for the yuan.
China Business Post cited unnamed senior bankers Saturday, saying if the central bank decides to revalue the currency, it would probably happen next month.
After a 5 percent revaluation, one US dollar would buy 7.887 yuan, compared with 8.277 at the current exchange rate, the newspaper added.
The story said the value of the Chinese currency could rise by a further 5 percent in 2005.
Renminbi is pegged at about 8.28 yuan per U.S. dollar. The current trading regime allows the yuan's value to fluctuate by 0.3 percent from its peg.
The People's Bank of China said in December that the country would keep a basically stable exchange rate as part of its monetary policy.
Zhou Xiaochuan, governor of the Chinese central bank, also said in
January that China is under less pressure to revalue the renminbi than it was
early last year as its trade surplus with the rest of the world is growing at a
slower rate than in the past.
The company also said it expects China to peg the renminbi to a basket of currencies instead of linking it directly to the greenback.