China's central bank pledged over the weekend to boost the yuan's flexibility based on market forces but stressed its key effort is on keeping the Chinese currency stable.

The People's Bank of China stated after its annual meeting yesterday that it will continue to make use of the market supply and demand to decide the yuan's value and optimize a managed floating system between the yuan and other currencies.

The central bank vowed to make the local currency more flexible and maintain its value at "a reasonable level," according to the statement released over the weekend.

China in July 2005 decoupled a peg between the yuan and the US dollar and began to let it float against a basket of currencies including the euro and yen. Since the revaluation, the yuan has climbed nearly 6 percent.

The central bank said it will strive to boost foreign-exchange management and ease the international trade imbalance this year.

Editor: Yan