China will keep its currency stable this year and has no plans to change the peg to the dollar, the government announced.
In December, Chinese media reported that China's central bank was quietly moving ahead with a plan to peg the RMB to a basket of 10 currencies, instead of the US dollar alone and investment bank Goldman Sachs released a report predicting the government would carry out a one-off revaluation before the end of March.
China has effectively pegged the RMB at about 8.3 to the US dollar since 1994 but it has come under increasing pressure, particularly from the US, to revalue.
Washington politicians insist the RMB is substantially undervalued, contributing to a mounting Chinese trade surplus with the US and the loss of American jobs.
US Federal Reserve chairman Alan Greenspan and many independent economists have rejected those claims.