China to keep RMB exchange rate generally stable: report

A $100 banknote is placed next to 100 yuan banknotes, file picture illustration taken in Beijing. [Photo/Agencies]

BEIJING - China will keep the RMB exchange rate generally stable while continuing with reforms of exchange rate liberalization, according to a government work report to the national legislature annual session.

China will continue to improve the market-based mechanism for setting the RMB exchange rate to ensure it remains generally stable at an appropriate and balanced level, the report said.

RMB has been heading south since the central bank revamped the foreign exchange regime in August to let market forces play a greater role in setting the currency's value.

Chinese authorities have on many occasions reiterated that there is no basis for RMB's continued depreciation, citing factors including the country's large foreign exchange reserve and healthy trade balance.