China's central bank governor Zhou Xiaochuan said the nation will not revalue the yuan when it expands foreign exchange trading next week, according to a report published Friday.
"That is definitely impossible," the official Xinhua news agency quoted Zhou as saying in response to a question about market rumors of a yuan revaluation on May 18. On that date, China will expands the number of currency pairs traded.
"That's only what foreigners have been saying, and only some individuals at that," Zhou said at a meeting of the Chinese Academy of Social Sciences, according to AFX-Asia. "Can you really take that seriously?" he said...
Zhou said expectations of a revaluation of the yuan are mainly due to external pressure but he noted that China's reforms are arising from internal concerns.
"We need to design our reforms, including taxation, interest rates and exchange rates, in an effort to solve domestic problems," he said.
"The key is to follow our own logic to design the starting point, the target and the process of the reform," Zhou said, adding that external pressure is not the focus in the reform of the yuan's exchange rate mechanism.