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China's central bank said on Wednesday that while currency adjustments can play some role in addressing external imbalances, any large fluctuations would be harmful to its economy and to others around the world.

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In a statement on its Web site (www.pbc.gov.cn), the People's Bank of China said it held a "reserved" attitude towards a recent International Monetary Fund (IMF) decision on monitoring foreign exchange policies of member countries.

The IMF on Monday approved changes that sharpen its monitoring of member countries' foreign exchange policies.