Beijing to push for yuan flexibility

The People's Bank of China (PBOC) has reasserted its commitment to push for more flexibility in the yuan, Reuters reported. The announcement was seen as a way to remedy shortcomings in financial markets. The PBOC said in its 2005 report that promoting a freer exchange rate continues to be a policy focus and that it will forge ahead with plans to free interest rates and develop new financial products. However, the bank stressed that there are still significant problems including over-reliance on loans and lack of banking efficiency. One avenue for improvement, the bank said, would be more interaction between banking, insurance and capital markets.