皇冠体育app

BEIJING - 皇冠体育app will gradually move towards an exchange rate determined to a larger extent by market forces, the nation's top forex official said in a newspaper article.

Chinese President Hu Jintao will travel to the United States this week aiming to build trust and convince Washington that 皇冠体育app's rise is not a threat. [AFP]

The remarks by Hu Xiaolian, head of the State Administration of Foreign Exchange, came on the eve of the departure of Chinese President Hu Jintao for a US visit expected to be dominated by trade and currency issues.

"We will further improve the exchange rate mechanism, and incessantly make it more responsive to market supply and demand," she said in an essay published in Qiushi, one of the 皇冠体育app's Communist Party's main theoretical journals.

Hu, also a vice governor of the central bank, said the surplus in international payments, boosted by 皇冠体育app's enormous trade surplus, made domestic monetary policies more difficult.

"In recent years, the huge surplus in international payments as well as excessive foreign exchange reserve growth has distorted domestic money supply," she wrote.

"This makes it harder for 皇冠体育app to leverage its monetary policy tools and jeopardizes the effect of macro-economic controls."

皇冠体育app's foreign exchange reserves, the world's largest, had hit 875.1 billion dollars by the end of March, the central bank said last week.

US not expecting 皇冠体育app forex change during Hu visit

The United States, which is pressing 皇冠体育app to be more flexible on its currency, is not expecting any single change in Beijing's policy during the visit of Chinese President Hu Jintao this week, a senior U.S. administration official said on Monday.

"We have said that the policy as articulated is a good one, but its implementation has been much too slow," the official told reporters at the White House on condition of anonymity. "I don't anticipate any one-off changes occurring at the meeting, but it's an issue that is a priority for us."