Chinese Prime Minister , Mr Wen Jiabao said today he would maintain a stable exchange rate but was also ready to "explore" a market-oriented reform.
"We are going to basically maintain a stable renminbi currency at a reasonable and balanced level, and secondly also ready and willing to explore and study the possibility of a renminbi exchange rate forming mechanism that will be market oriented," Mr Wen told a news conference.
He added a reform of the exchange rate system was conditional on proper macro economic conditions and a prudent banking system, and China was taking steps on both these issues.
The renminbi's (also known as yuan) exchange rate of about 8.28 to the dollar has been criticised by the United States and other countries that say the currency is undervalued, making Chinese goods artificially cheap on global markets.