Reforms to China's foreign exchange system have been delayed until at least the second half of next year. Chinese officials are said to have delayed changes until the country's interest rate market becomes more flexible, according to analysts in Hong Kong. China is seeking to widen its currency band to control appreciation, because it wants its exports to remain competitively priced in the medium term.
Analysts note that the Chinese government appears to be open to the idea of a more flexible foreign exchange system and are said to be consulting advisors as well as the International Monetary Fund on how to implement such a system, including Chinese yuan band widening. Calls to the IMF rep office in Beijing were not returned.
