(Adds quotes on policy suggestions, background)

By Langi Chiang

ST ANDREWS, Scotland, Nov 7 (Reuters) - China on Saturday shrugged off international pressure to appreciate its currency, saying developed countries should focus on the quality of their own economic policy-making.

Chinese Finance Minister Xie Xuren, speaking after finance ministers and central bank governors of the Group of 20 nations met in Scotland, said countries with global reserve currencies should work to maintain the currencies' value to avoid destabilising the world economy.

All countries should pay attention to the sustainability of their fiscal policies and economic growth, and take timely and effective steps to address potential risks, including inflation, China's official Xinhua news agency quoted Xie as saying.

Chinese central bank governor Zhou Xiaochuan said the International Monetary Fund should increase its monitoring of economic policies and financial markets in developed countries, Xinhua reported.

Neither Xie nor Zhou referred to specific developed countries, but in the past China has warned the United States to act responsibly in protecting the value of Beijing's U.S. dollar assets.

The Xinhua report was the first official Chinese response to the G20 meeting, which ended on Saturday.

The meeting's communique did not refer to foreign exchange rates, but officials from several countries, including Japan, Brazil and Indonesia, urged Beijing on the sidelines of the meeting to let the yuan move more flexibly.

China has kept the yuan almost flat against the dollar since mid-2008, and some countries argue the currency needs to appreciate to ease imbalances in global trade.

The Xinhua report did not mention any criticism of China's yuan policy. Instead, it quoted Xie and Zhou as suggesting a range of policies to the G20 and the IMF.

There are still many uncertain factors in the current global economic recovery, so all the countries should keep the continuity and stability of macroeconomic policies, Xie said.

He added that countries should share mutual but different responsibilities in funding global efforts to fight climate change. China has argued the rich world should pay more than poorer nations.

Zhou said the IMF should increase the role of developing nations inside the organisation, and hire more personnel from developing countries.

He also said financial institutions should have more prudent incentive policies, to prevent excessive risk-taking, and there should be a mechanism to wind up failing firms so they did not count on government bailouts. He did not elaborate. (Editing by Andrew Torchia)

China Japan International Monetary Fund G20