The central government has ruled out increasing the flexibility of its rigid exchange-rate regime by widening the renminbi's trading band in the immediate future, the country's top foreign exchange official said.
Guo Shuqing, director-general of the State Administration of Foreign Control, also dashed immediate hopes of moving to a managed float against a basket of currencies. Such a plan was first proposed by the former governor of the People's Bank of China, Dai Xianglong.
Mr Guo said China would not bow to international pressure to change its exchange-rate policy, amid renewed calls by Japan and the US for the yuan to appreciate. His comments came after a CPPCC panel discussion.
Asked if China would respond to rising pressure to allow a small appreciation of the yuan by widening the narrow trading band this year, Mr Guo said: 'External pressure is not a major factor that we consider.'
He said current conditions were not suitable for a widening of the trading band.
'We don't have a plan at the moment, but in the future we may need to do that. It all depends on international balances, trade and investment flows, the macro-economic environment and the money market and interest rate situation,' Mr Guo said.
