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LEAD: China's central bank says it will not readjust currency

BEIJING, July 26 Kyodo

(EDS: ADDS DETAIL)

The People's Bank of China said Tuesday last week's 2 percent currency revaluation would not lead to further changes, despite reports to the contrary in overseas media.

In a statement released through the official Xinhua News Agency, the central bank said it was not planning further adjustments.

''This actually does not signal that after the 2 percent adjustment there will be a further adjustment,'' Xinhua reported, citing a bank spokesperson.

''But also there are isolated foreign media that have manufactured misunderstanding toward the content of the reform, especially toward the adjustment of the renminbi's (yuan) value against the U.S. dollar, even misunderstanding that the 2 percent increase is just an initial adjustment,'' Xinhua said.

China, under pressure to let its currency float more freely, announced last Thursday it would revalue the yuan by about 2 percent and cancel its decade-long peg to the U.S. dollar.

The central bank said then the yuan would instead be pegged to a basket of foreign currencies under a managed float.

The bank spokesperson said via Xinhua the adjustment was ''confirmed as necessary'' and China had considered whether Chinese businesses could support the change and institutions could get used to it.

''The People's Bank of China warmly welcomes the continued attention of all circles in and outside China,'' Xinhua said. ''And it hopes the relevant media will take a responsible attitude in correctly understanding the spirit of the reforms and objectively report the content of the reforms.''

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