Yuan exchange rate to be more flexible

BOAO, Hainan - China will make the yuan's exchange rate more flexible, but in a "step-by-step" manner, China's central bank governor Zhou Xiaochuan said here on Friday.

Zhou, governor of the People' s Bank of China (PBOC), made the remarks when discussing issues related to the Group of 20 (G20) countries at the ongoing Boao Forum for Asia.

Zhou said that he welcomes the international discussions on the inclusion of the renminbi, or yuan, in the basket of currencies that forms the Special Drawing Rights (SDR), a monetary unit of international reserve assets maintained by the International Monetary Fund.

"But we need more time to prepare (for such inclusion)," he said, reiterating the similar stance he made at a meeting on the sidelines of the gathering of financial ministers of the G20 in Nanjing earlier this month. Then, he said that China is in no hurry to let the yuan join the SDR basket of currencies.

Zhou expected that issues related to the international monetary system, and the SDR in particular, will not be the focus of discussion at the G20 summit meeting in France later this year.

"All we need is strong and balanced economic growth, particularly in G20 countries," he added.