Slowly, slowly on China’s yuan reform

LONDON - China is committed to revamping its foreign exchange regime and further relaxing its capital account controls, central bank governor Zhou Xiaochuan says.

The United States and Europe are urging China, which pegs its yuan currency to the American dollar, to relax its foreign exchange policy to help correct global imbalances.

In London at the weekend, Zhou said China constantly sought to improve its exchange rate mechanism.

"We are going to gradually deregulate controls on our capital account and finally reach capital account convertibility."

Zhou also reiterated China's position that there was no immediate change in the currency policy.

China has said it will move to a more flexible currency regime at some stage but only when it has reformed its financial system.

- REUTERS