Chinese Premier Mr Wen Jiabao reiterated China's stance that the reform of the exchange rate regime should be carried out independently, gradually, carefully and controllably for the purpose of social stability, as many Chinese processing enterprises will go bankrupt if the yuan rose substantially at once.
Mr Wen during an online chat with Internet users said that yuan appreciation is in the interest of China economy and Chinese people. China will continue to promote the yuan's flexibility based on market demand and will shift the yuan's peg from the dollar to a basket of currencies.
He said China's real exchange rate has increased by 3.7% against U.S. dollar since last June.
( Source: www.steelguru.com )