China's central bank governor says the Chinese currency has reached its equilibrium rate and its value is mainly determined by the market, rather than intervention.

In a speech delivered by one of his deputies, Zhou Xiaochuan, governor of the People's Bank of China, said Sunday that the central bank has refrained from intervening in the market in the past year.

The U.S. has long urged China to lift controls on foreign exchange markets that Washington contends keep the Chinese yuan undervalued, making the country's exports relatively less expensive in overseas markets.

PBOC vice governor Yi Gang, who delivered the speech, said China knows that a fixed exchange rate is unsustainable and will continue with reforms.

He said China's main focus was on fighting inflation while supporting growth.