The Bank of China said that the strength of the RMB has brought some pressure on exports. In order to enhance the marketization and benchmark of the central parity of RMB against the US dollar, Bank of China decided to improve the quotation of the central parity of RMB against the US dollar.

The Bank of China believes that the real effective exchange rate of RMB deviates from market expectations. The real effective exchange rate of RMB is stronger than many currencies in the world. On February 25th, 2006, the central parity of RMB exchange rate in the inter-bank foreign exchange market was 1 AUD to RMB 4.6702, and 100 AUD to RMB 467.02.