China to Keep RMB Exchange Rate Basically Stable

China will keep the exchange rate of its currency yuan basically stable at an appropriate and balanced level, Premier Wen Jiabao said in his government work report Monday.

"We will improve the mechanism for setting the RMB exchange rate, make the floating exchange rate regime more flexible," Wen said in the report delivered at the annual parliamentary session opened Monday.

China's central bank announced on June 19, 2010, that it would further the reform of the formation mechanism of the yuan exchange rate to improve its flexibility. In February this year, the yuan broke the 6.3 mark against the U.S. dollars, having appreciated by nearly 8 percent over the period.