China's central bank has moved to cool expectations of a further revaluation of the renminbi, insisting that last week's 2.1 per cent increase against the dollar had been calculated to leave the currency at a "reasonable and balanced" level.

In a "solemn declaration" that appeared to reflect worries about possible speculative capital inflows, the People's Bank of China said the revaluation and simultaneous scrapping of the dollar peg were initial moves in reforming its currency regime.

It said: "This certainly does not mean that the 2 per cent adjustment of the renminbi is a first step that will be followed by further adjustment."

Many investors and analysts have seen last week's renminbi appreciation, which was much smaller than the US and other trading partners had demanded, as a mere prelude to a more substantial but gradual revaluation.

Zhou Xiaochuan, People's Bank governor, reinforced such expectations on Saturday with remarks aimed at explaining the "core content" of the revaluation and rate regime reform.

"We have made an initial adjustment to the exchange rate level of 2 per cent," said Mr Zhou, who is widely believed to have pushed for a greater revaluation than was unveiled last week.

However, the central bank insisted that Mr Zhou had meant Thursday's revaluation was only an initial step in reform of the exchange rate regime.

The bank blamed foreign media for "creating misunderstanding" on the issue, but its belated attempt to recast Mr Zhou's remarks is likely to fuel talk of disagreement between the governor and other Chinese leaders about renminbi policy.