GOV.cn Says Yuan X-C Rate to Gradually Increase Without Forced Action
On October 14, 2010, China reaffirmed its determination to advance the reforms of the formation mechanism of the Renminbi (RMB), or the yuan, exchange rate but dismissed calls for the currency's appreciation, states GOV.cn.
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Chinese Foreign Ministry spokesman Ma Zhaoxu told a regular news briefing that the reform of the formation mechanism of the yuan exchange rate aims to create a managed floating exchange-rate regime based on market supply and demand and adjusted to a basket of foreign currencies, to gradually allow more flexibility in the yuan exchange rate while maintaining its basic stability on a reasonable and balanced level.
"The yuan has appreciated by an accumulated 55 percent in terms of real effective exchange-rates since China initiated reform of the yuan exchange rate mechanism in 1994. Some major currencies depreciated in the same time period." China deepened the reform of the yuan exchange rate mechanism in July 2005. The yuan has appreciated 22 percent against the U.S. dollar since then.