China must stick to a moderately loose monetary stance, use policy tools flexibly and control inflation to keep the yuan stable, Zhou said.

China has stalled the yuan's gains against the dollar since July last year, protecting exporters as stimulus spending drives the recovery in the world's third-biggest economy. Exporters at a trade show in Shanghai yesterday urged the government to delay gains by the currency after overseas shipments slumped 23.4 percent in August from a year earlier.

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Monetary policy needs to be continuously adjusted in relation to the nation's economic development, employment, currency stability and the international balance of payments, Zhou said.

The central bank chief also said China's growing economic influence in the developing world merits a louder voice for Beijing in the international financial system.

Zhou's remarks feed into a debate about how to redistribute voting power in institutions such as the International Monetary Fund to better reflect the fast growth of big emerging economies including China.

"Our voice largely comes down to our economic achievements; the economy and financial system go hand in hand," Zhou said." The economy has grown and so China's financial system has gained in recognition. It is a result of our own efforts."

The United States has proposed a 5 percent transfer in voting power at the IMF from developed countries to some "dynamic" emerging economies, which are seeking a 7 percent shift. BLOOMBERG, REUTERS