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China to follow own reform path for yuan

(Reuters)
Updated: 2006-03-11 10:13

China will determine the reform path of the yuan according to its own needs and will not follow the dictates of other countries, central bank governor Zhou Xiaochuan said on Saturday.

Zhou, governor of the People's Bank of China, told reporters that recent softness in the yuan mainly reflected movements in the dollar against the euro and the yen.

Speaking on the sidelines of the National People's Congress, Zhou said the yuan would be discussed next month during the International Monetary Fund's Spring meeting, but the talks would be dominated by discussions of global imbalances and not China's growing trade surplus with the United States.

He also said Beijing was studying an injection of capital into Agricultural Bank of China, the weakest of the Big Four state-owned banks.



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