BEIJING - A small and gradual appreciation of yuan will have a significantly more positive than negative impact on China's domestic economy, said a senior Chinese central bank official on Thursday.

According to a Reuters' report, Sheng Songcheng, chief of the statistics department of the central bank, told Financial News that the central bank should push forward the exchange mechanism reform in an orderly manner.

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The mechanism reform will give businesses adequate adjustment time and relatively accurate expectations for the exchange rates changes, Sheng said.