¡°Further improving renminbi (yuan) exchange rate formation mechanism is a set task,¡± the newspaper quoted Hu Xiaolian, head of the State Administration of Foreign Exchange (SAFE), as saying.
¡°The goal of the exchange rate reform is to make it more market-driven and more flexible, rather than merely moving towards a revaluation,¡± said Hu.
Hu reiterated the government's position that the country would take the initiative in reforming the currency regime, but the reform would be carried out in a controlled and gradual way to avoid risk, the newspaper reported.
She predicted there would be less ¡°administrative interference¡± in the foreign exchange market, leaving more room for market forces.
Against the background of growing foreign capital inflows and increasing foreign exchange reserves, Hu said SAFE would take more measures to encourage domestic enterprises to compete on an international level.
The United States and China's other trading partners are pressuring the Chinese Government to revalue the yuan, which is pegged at 8.28 to the dollar.
China has pledged to make the yuan more flexible through gradual reforms but has refused to be rushed into action.