A senior Chinese central bank official Friday stated that China's exchange rate reform was moving at a proper pace and in the proper direction, with obvious benefits.

China initiated the managed float of its currency, which was based on market demand and in reference to a basket of currencies, according to its own circumstances and in line with its development strategy, wrote Hu Xiaolian, deputy governor of the People's Bank of China (PBOC), in an article published on the bank's website.

The mechanism was conducive to promoting economic restructuring and sustainable development, and helped enhance macro-economic control and facilitate the nation's strategic development, Hu wrote in her fifth elaboration on China's exchange rate policies in the past two weeks.

The PBOC announced June 19 it would further reform the Renminbi exchange rate mechanism and allow greater exchange rate flexibility. At the same time, it ruled out a one-off revaluation.

"China's exchange rate reform is in accordance with its fundamental and long-term interests," she wrote.

(Xinhua News Agency July 30, 2010)