China said Thursday it would push forward gradual currency reforms in a "rational" way, in response to demands from Washington to take quicker steps to allow the Chinese yuan to appreciate.
"We will continue to firmly push forward the reform of the currency regime and perfect the yuan exchange mechanism that is now taking shape," foreign ministry spokesman Liu Jianchao said.
China would also develop a domestic market for foreign exchange, increase the flexibility of the exchange rate and allow financial institutions greater capacity to set prices and guard against risks, Liu said.
"We will maintain the rational, balanced and relatively stable level of the yuan," he added.
On Wednesday, the US Treasury Department attacked China for making "far too little progress" in reforming its exchange rate, but pulled back from accusing the booming country of manipulating its currency.
In a twice-yearly report on global exchange-rate policies, the Treasury Department said China manages an inflexible currency regime that fosters dangerous imbalances in world trade.
Liu discounted the allegations and reiterated Beijing's position that currency regime reforms would come at a pace set by the condition of the nation's economy.
"China all along has maintained a highly responsible attitude and proceeded from the actual situation of China's economic development and regional and global economic stability to decide a currency policy that conforms with China's national economy," he said.
