China says no change to yuan for rest of the year

China's central bank yesterday ruled out major changes in the exchange rate of the yuan in the second half of the year, state media reported.

The People's Bank of China said in its quarterly monetary report that it will maintain the "basic stability" of yuan for the rest of the year, according to the China News Service. It also ruled out "large-scale appreciation" of the yuan, which is tied to the US dollar.

"We will improve the exchange rate mechanism, based on the principle of supply and demand in the market and the maintenance of the managed float," the bank was quoted as saying by the news agency.

It did not elaborate on its pledge to improve the exchange rate mechanism.