Market to determine exchange rate: PBOC

The market will play a bigger role in determining the exchange rate of the yuan and eventually make it fully convertible, the country's top banker said yesterday.

"Supply and demand forces in the market will play a bigger role in setting the yuan's rate," Zhou Xiaochuan, governor of People's Bank of China (PBOC) said on the sidelines of the Party congress.

Talking about recent complaints from European countries over the renminbi exchange rate, Zhou said worries may arise from the rapid increase in China's trade surplus with EU. He also cited the weakening dollar, which has exerted upward pressure on the euro's value, before expressing his sympathy for those affected.