China's yuan is not substantially undervalued given the country's balance of payments, but it will manage capital flows with the aim of eventually making the currency convertible, China's central bank governor said.
But Zhou Xiaochuan, who made the remarks in an interview with the official Xinhua news agency, said China would follow its own timetable for currency reform, according to the needs of its development.
Zhou made the comments late on Saturday in London where China attended the Group of Seven talks.
China will "set up mechanisms to control capital flows to create conditions to achieve renminbi convertibility under the capital account at an early date," Xinhua said.
But Zhou also said any reform would require a stable macroeconomic environment and healthy financial system and that the impact on the global economy should be considered.
China has been under pressure from rich nations to liberalise its currency, which is currently pegged near 8.28 to the dollar.
The United States and Europe have complained the exchange rate is too low, making Chinese exports artificially cheap on world markets and costing U.S. manufacturing jobs.
Zhou's comments echoed those his deputy Li Ruogu made earlier in the day, when he said: "We are determined to move towards a flexible exchange rate, but no timetable".(По сведениям информационного агентства )