Chinese President Hu Jintao's planned visit to the United States next month is not determining the quickening appreciation of the yuan, Wu Xiaoling, a deputy governor of the People's Bank of China, said on Saturday.
Asked by Reuters on the sidelines of a financial forum whether China would let the yuan rise faster ahead of Hu's trip, expected in late April, she said: "As Wen Jerboa has said, there is no link. We will use market means."
Wen, China's premier, on Tuesday ruled out a further one-off revaluation and said the yuan would fluctuate according to market forces.
Wu said later in a speech to the forum that China needed to keep tweaking its policies to reduce the external payments imbalances that caused its foreign currency reserves to balloon to $819 billion at the end of 2005, second only to Japan's.
"China should continue to make adjustments to its foreign exchange policy of relaxed inflows combined with strict outflows, which is the source of excessive increases in foreign exchange reserves," she said.
The authorities would also redouble their efforts to cut off what Wu called the "irrational" supply of foreign exchange a reference to inflows that circumvent China's capital controls in order to speculate on property or a rise in the yuan.
It has risen a total of 0.98 percent since then, far from enough to satisfy critics in Washington.
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