China central bank to take "gradual and safe" approach on currency peg

0 Comments | AFP, November, 2004

BEIJING (AFP) — China's central bank said it would take a "gradual and safe" approach to loosening the yuan-dollar peg, following International Monetary Fund (IMF) calls to let the currency float in a wider margin.

A spokesman for the People's Bank of China quoted by the Jinrong Shibao financial daily Saturday said China would phase in moves to make the currency exchange rate more flexible.

The yuan is currently pegged in a narrow margin around 8.28 to the dollar under a regime enforced by the People's Bank of China. The spokesman said any moves to loosen the peg would be complex and would need to take many factors into consideration.

The bank would "adopt various measures to promote this reform gradually and safely," he said.

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