U.S. welcomes China's decision on further exchange rate reform

U.S. Treasury Secretary Timothy Geithner on Saturday welcomed China's decision to further reform its exchange rate mechanism.

"We welcome China's decision to increase the flexibility of its exchange rate," Geithner said in a statement released by the Treasury Department.

"Vigorous implementation would make a positive contribution to strong and balanced global growth. We look forward to continuing our work with China in the G20 and bilaterally to strengthen the recovery," he said.

The People's Bank of China, China's central bank, earlier on Saturday announced a decision to proceed further with the reform of the exchange rate regime to enhance the flexibility of the RMB's exchange rate.

In a recent Congress hearing, Geithner reaffirmed that China's yuan is a sovereign currency and the decision on reforming its exchange rate mechanism should be made by the Chinese government.

Source: Xinhua