chinaChina is aiming to liberalize interest rates within two years, but the timetable will depend on economic circumstances at home and abroad, China’s central bank governor Zhou Xiaochuan stated. ‘The timetable to liberalise interest rates will be mostly carried out according to conditions of the domestic economy and global economy, but we believe it could be realised within two years,’ Mr Zhou told a press conference at the ongoing China-US Strategic and Economic Dialogue. Mr Zhou said China was planning to ease its grip on banks’ deposit rate. This is the last and most important step of interest rate liberalisation. After the liberalization of the interest rate the central bank will have its policy rate play a guiding role in the market via mechanisms on the monetary market. China will also ease Forex rules for investment firms overseas, besides central bank will ‘significantly cut intervention on the forex market’. The international forex market will see some abnormal fluctuations as major countries adjust their currency policies, said Zhou. As a result, China has to be discreet about the spillover effect, he noted. Data showed the Chinese currency, the yuan, had appreciated by more than 12 percent by January this year. Analysts have forecast that greater two-way fluctuations of the yuan may become a normal trend in the future.