China's central bank has moved to cool expectations of a further revaluation of the renminbi, insisting that last week's 2.1 per cent increase against the dollar had been calculated to leave the currency at a “reasonable and balanced” level.

In a “solemn declaration” that appeared to reflect worries about a possible resurgence of speculative capital inflows, the People's Bank of China said the revaluation and simultaneous scrapping of the dollar peg were initial moves in the reform of its currency regime.