Bank governor denies China currency moves

May 13, 2005 at 9:39 AM
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BEIJING, May 13 (UPI) -- The governor of China's central bank Friday denied reports that the country's currency would be revalued on May 18.

Governor Zhou Xiaochuan made the comment in response to a question by a Xinhua reporter at a seminar sponsored by the Chinese Academy of Social Sciences.

"It is foreigners, especially some individuals, who predicted the Yuan's appreciation on May 18," he said.

The Yuan, also called the renminbi or RMB, is pegged to the U.S. dollar at a rate of about 8.28 to 1. The Yuan has floated in a very narrow bandwidth exchange rate of less than one percent since 1997.

"We'll design our measures in accordance with the logic of (domestic) reform, no matter if they concern taxation, interest rate or the exchange rate," Zhou said.

He noted China plays an increasingly important role in international finance and will pay close attention to the impact on the world economy when it considers reform measures.

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