BEIJING, March 5 (Xinhua) -- China will ease and tighten its prudent monetary policy to the right degree, according to a government work report available to news media Tuesday morning ahead of the annual legislative session.

China will use flexibly a variety of monetary policy instruments to effectively mitigate difficulties faced in the real economy, especially by private enterprises and small and micro businesses, says the report.

The country will improve the exchange rate mechanism and keep the RMB exchange rate generally stable and at an adaptive and balanced level, according to the report.