Premier wen Jiabao said yesterday that a stable renminbi exchange rate helps promote the economic development of both China and its neighbors, as well as the rest of the world.

　　Wen was speaking at a meeting with Citigroup Chairman Robert Rubin and its would-be CEO Charles Prince.

　　He expounded on the Chinese government's policy on the renminbi exchange rate, and said that China has taken notice of international concern about the exchange rate.

　　"The Chinese government has always held a serious and responsible attitude toward the issue," said Wen.

　　He said that during the Asian financial crisis in 1997, China did not devalue the currency and maintained its exchange rate, while many countries around China devalued their currencies. China's efforts contributed to the stability of the economy and financial well-being of the region and the world, he said.

　　A nation's exchange rate system and policy should be determined by the nation's domestic economic situa-tion and international in-come and expenses, the premier said. "A regulated, floating exchange rate system based on market supply and demand as implemented by China complies with the country's current situation."

　　China should further explore and improve the mechanism of the renminbi's exchange rate as it moves deeper into financial reform, Wen said.

　　The people's Bank of China, the nation's central bank, reiterated yesterday its determination to maintain the current exchange rate of renminbi.

　　In a report on the imple-mentation of China's monetary policy, the bank said that it would further improve the exchange rate system and secure the balance of international revenues and expenditures, while adhering to a regulated floating exchange rate system based on market supply and demand.

　　The central bank said it would continue to carry out a prudent monetary policy and maintain the policy's stability and continuity in the second half of this year.

　　The pbc also pledged to keep a close eye on the latest developments of financial operations at home and abroad and strengthen the supervision of monetary credit.

　　The pbc predicted yesterday that the world will undergo a "very slow" process of economic recov-ery in the second half of the year, which would help cultivate a strong trend of trade protectionism.

　　The exportation expan-sion scheme of Chinese commodities might be curbed by the trend and the currency would experience growing pressure for appreciation, the bank said.