The governor of central bank of China indicated the government will detach the China’s currency soon. The information was announced on Saturday. The value of china currency will be reduced from that of the American dollar. The statement of prime minister Wen Jiabao said that that the exchange rates are stable as of now. The idea of many economist and leaders is that China’s exports are increased by the artificial renminbi.

Zhou Xiaochuan the central bank head felt China has to be very cautious in revaluing the renminbi. The reason is due to the growth of major countries is slow. The currency of china was called as a special foreign exchange mechanism which is made to respond to the crisis of the financial world. The timing should be very discreet as the mechanism will be sooner or later abandoned the head said. Until late 2008 the renminbi saw a slow appreciation against dollar.

The price advantage of Chinese manufactured exports was maintained by the government of Beijing. Chinese economy was kept in track with the help of currency stabilization and largest stimulus program. The exports of china are recovering and a boost is seen so the western governments are pressuring the Beijing government to raise the Yuan. The Zhou said duration of two to three years will see the recovery of the global exports.