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China: Fixed-Rate Foreign Exchange to be Changed Gradually


China's prime minister says his country is moving toward a more flexible foreign exchange rate, but that it will be done gradually.

Wen Jiabao spoke to reporters Wednesday after a meeting with European Union officials in The Hague, Netherlands. He said China plans to move away from its current system, which pegs the Chinese yuan to the U.S. dollar, and toward a free-floating exchange.

But he said China will make the change on its own timetable, to preserve the nation's economic stability.

The United States and other nations have pressed China to end its fixed rate, saying it keeps the yuan's value unfairly low, making Chinese goods cheaper than their competition in the global marketplace.

Some information for this report provided by AFP and Reuters.

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