BEIJING (MNI) - The reform of the Chinese exchange rate hasn't caused major damage to the country's export sector, People's Bank of China deputy-governor Hu Xiaolian said in comments published Friday.

"We effectively controlled the possible negative impact from the 2005 yuan exchange rate reform...Despite the rising exchange rate, labor costs and falling export rebates, our country's export sector has still improved. Exports haven't suffer any concrete impact," Hu said, calling 2006 to 2008 a "golden age" for China's foreign trade.

The deputy governor said the negative impact of the reform had been overestimated ahead of the launch.

Hu also said companies tend to exaggerate the negative impact on profitability and employment from the floating exchange rate in an attempt to win government support, and to underreport the benefits of a flexible exchange rate.

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