Pinpointing a rational exchange rate level for China's yuan, either theoretically or practically, is hard, according to a central bank vice governor quoted by domestic media Monday.

Reform of the yuan would focus on improving the exchange rate mechanism, vice governor Wu Xiaoling was quoted as saying in the China Securities Journal.

"The exchange rate of renminbi has come under pressure, but the crucial point is not the level," Wu said at a forum in Beijing.

"Nobody can work out theoretically what is the balanced and rational exchange rate. Practically it is very hard to fix the rational level of any exchange rate."

The remarks are the latest signal from the government that it will not rush to overhaul its fixed-currency system, which the United States and other Western countries complain makes Chinese exports unfairly cheap.

China has pegged its currency at around 8.28 yuan to the U.S. dollar since the mid-1990s. Western countries have been saying the yuan is undervalued and gives Chinese products an unfair advantage in global markets.

China has said it would reform the system at some point but has yet to provide a timetable.

Source: Shenzhen Daily