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10/13, 1:31 PM (Source: TeleTrader.com)
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China vows not to use currency manipulation as tool in trade disputes

People’s Bank of China Governor Yi Gang (pictured) stressed that his country will not use currency manipulation as a tool to overcome the ongoing trade frictions, according to a statement by the International Monetary and Financial Committee (IMFC) posted on Saturday. Yi pledged to keep the value of yuan "broadly stable" and market determined.

"China will continue to let the market play a decisive role in the formation of the RMB exchange rate,” Yi said. “We will not engage in competitive devaluation, and will not use the exchange rate as a tool to deal with trade frictions.”

Yi's comments come a day after US Treasury Secretary Steven Mnuchin stressed that any trade deal with China has to include currency policy discussions. "Whatever we make up for on trade, we don't want to lose on currency," he underscored at the International Monetary Fund annual meetings in Bali, Indonesia. Earlier this week, Mnuchin noted that the Chinese currency dropped "significantly during the year" and added that the Trump administration is looking at the issue "very carefully."

Breaking the News / FH