Spillover effects of Chinese market fluctuation 'exaggerated': IMF deputy chief

The Chinese yuan's exchange rate will be determined with more reference to the basket of currencies, said Ma Jun, chief economist of the People's Bank of China's research bureau.

In Zhu's opinion, the move shows that China's central bank wants to increase market transparency. "In this direction, the renminbi exchange rate mechanism will become increasingly flexible."

Pushing for global monetary system reform

China decided to push for the reform of the international monetary system under the G20 framework, Zhu said, adding that it is very important for China to be actively involved in global rule-making.

"This is the unshirkable responsibility the world's second largest economy should take," he said.

There was a reform group under the international monetary framework before, but it was suspended later, Zhu said.

China has decided to restart the group and play an important role in promoting the reform of the international monetary system, he said.

An important part of financial reform is reforming monetary systems, Zhu said, saying that China's currency reform made progress in the past three months, establishing a more flexible renminbi exchange rate regime and the Cross-border Inter-bank Payment System.

The achievements in China's currency reform are conducive to stabilizing both the Chinese and world economy, he said.

Zhu believed that a floating exchange rate system is the first line of defense against large-scale capital flows and volatility. "It is an extremely important strategy that China's central bank chose a drifting management system of exchange rate," he said.