RMB exchange rate relatively close to equilibrium level

The exchange rate of the Chinese currency, the renminbi (RMB) or yuan, is "relatively close" to equilibrium level and the supply and demand in the market is generally in balance, Yi Gang, a vice governor of China's central bank, told Xinhua in an interview.

"The most convincing evidence to support this is that China's newly added foreign exchange reserve last year was the least over the past five years," Yi said on the sidelines of the annual meeting of the World Economic Forum (WEF) Saturday.

"This means that the central bank doesn't have to intervene in the market on a large scale, and the slower pace of growth in our foreign exchange reserve is a good thing," he added.