Xinhuanet Beijing July 2 1 Sunday (Reporter Zhang Xudong) The People's Bank of China announced on July 2 1 that in order to establish and improve China's socialist market economic system, give full play to the basic role of the market in resource allocation, and establish and improve a managed floating exchange rate system based on market supply and demand, with the approval of the State Council, The relevant matters on improving the reform of RMB exchange rate formation mechanism are announced as follows: 1. Since July 2, 2005, China has started to implement a managed floating exchange rate system based on market supply and demand with reference to a basket of currencies. The RMB exchange rate is no longer pegged to a single dollar, forming a more flexible RMB exchange rate mechanism. 2. The People's Bank of China shall, after the market closes every working day, announce the closing price of the exchange rate of USD and other trading currencies against RMB on that day, as the middle price of the currency against RMB on the next working day. 3. On July 2, 2005 1 day 19, the transaction price of USD against RMB was adjusted to1USD against 8. 165438 0 yuan RMB as the middle price of transactions between designated foreign exchange banks in the inter-bank foreign exchange market the next day, and the designated foreign exchange banks can adjust the listed exchange rate for customers from now on. 4. At this stage, the daily transaction price of USD against RMB in the inter-bank foreign exchange market is still within three thousandths of the median price of USD transactions announced by the People's Bank of China, and the transaction price of non-USD currencies against RMB fluctuates within a certain range above and below the median price of this currency transactions announced by the People's Bank of China. The People's Bank of China will adjust the floating range of exchange rate according to market development and economic and financial situation. At the same time, the People's Bank of China is responsible for managing and regulating the RMB exchange rate according to the domestic and international economic and financial situation, based on market supply and demand, with reference to changes in the exchange rate of a basket of currencies, maintaining the normal fluctuation of the RMB exchange rate, maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level, promoting the basic balance of international payments, and maintaining macroeconomic and financial market stability. (