The People's Bank of China, or the central bank, said Thursday in Beijing that a rational floating rate system will be further improved in 2006, a step to give a full play to the market in forming the Renminbi exchange rate.

The central bank made the announcement at its annual working conference convened in Nanchang, capital of east China's Jiangxi Province.

According to the central bank, China launched reform on its Renminbi exchange rate forming system in July 2005, and great achievement has been made in the past months in the field.

The central bank said at the conference that the reform on China's Renminbi exchange rate will be accelerated in the year 2006, and China's currency, the yuan, will keep basically stable and floating at a rational equilibrium.

Source: Xinhua