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The head of the Asian Development group has urged Beijing to adopt a more flexible currency exchange system, saying removing the yuan's peg to the dollar will be good for both China and its neighbors.
ADB president Haruhiko Kuroda told reporters that pegging the yuan to the dollar significantly contributed to the stabilization of China's economy, which experienced high inflation in the early 1990's.
But after China's rapid economic growth China has achieved stability and continuing to peg the yuan to the dollar may not make sense for the Chinese economy.
China's central bank governor, Zhou Xiaochuan said at a weekend meeting in London of Group of Seven finance officials that China needs more time to reform its banking and financial systems to pave the way for reforming the currency policy.
(CRI.com February 10, 2005)
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