Publications
Partners
Shanghai - The Chinese government is reviewing proposals to adjust its currency exchange rate system next month, Chinese media reported, as international pressure grows on Beijing to revalue the yuan.
The proposals include giving the yuan a more flexible exchange rate by widening the Chinese currency's narrow daily trading band, the weekly Caijing Magazine reported in its latest issue, citing unnamed sources.
Currently the yuan may rise or fall 0.5% against the dollar each day from a mid-point set by the central bank and 3% for non-dollar currencies such as the euro and Japanese yen.
The magazine said it had been proposed the change should take effect in April.
The timing would be significant, with US lawmakers pushing the Treasury Secretary Timothy Geithner to label Beijing a "currency manipulator" in a report due April 15 that could trigger tougher action on China.
Differences remain on the issue among various Chinese government arms, which include the central bank, finance ministry and commerce ministry, but they are building a consensus on important fronts, the report said.
Washington has led the international charge in ramping up the pressure on Beijing to let the yuan - effectively pegged at about 6.8 to the US dollar since mid-2008 - appreciate.
Li Daokui, a newly appointed central bank adviser, said in remarks published on the magazine's website on Tuesday that China should adjust the value of the yuan by September to head off more political pressure in the US mid-term elections two months later.
The dispute over the value of the yuan is one of several issues that has fuelled tensions between the United States and China in recent months.
US President Barack Obama said on Monday he was determined to further develop a "positive relationship" with China, in comments welcomed by Beijing as the two powers seek to overcome the deep strains in their ties.
- Sapa-AFP
