China will not rush to reform its exchange rate regime, a top government official said on Saturday, dashing hopes for a breakthrough on currency issues at next week’s G7 meeting.For over a year now, top industrial nations have been urging China to let its yuan currency rise in value as part of a global strategy to balance world growth and help resolve the massive US current account deficit.A flexible exchange rate regime for China, along with dollar weakness triggered by US trade and fiscal deficits, will be hot topics at the G7 meeting which starts in London on Friday. China’s central bank officials and finance minister will attend.But Huang Ju, China’s vice premier in charge of financial and banking issues, told the World Economic Forum’s (WEF) annual meeting that before acting on exchange rates, China needs to continue restructuring its banking system and opening up its capital markets.
