China will increase the flexibility of yuan exchange rate in 2011, as per the country’s foreign exchange regulator, The Wall Street Journal reports. The State Administration of Foreign Exchange (SAFE) added that the country will also continue to prevent speculative money inflows this year.
China will emphasize on market supply and demand fundamentals, supervise a floating exchange rate system and strengthen the flexibility of the yuan exchange rate, SAFE added. The country will continue diversifying its foreign exchange reserves, which mainly consists of the U.S. dollar.
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