Yuan ‘ won’t be devalued’ to provide support for exports, Premier vows

China will not devalue the yuan to boost exports, Premier Li Keqiang said on Wednesday.

Last year, the global foreign exchange market experienced volatility, and major currencies depreciated against the US dollar, Li told a press conference after the close of the annual legislative session.

He added that the depreciation of the yuan against the dollar was quite modest. And China has no intention of devaluing its currency to boost exports, as the move won’t help companies’ transformation and upgrading, Li said.

The nation will continue its exchangerate reform and follow a system of managed floating exchange rates determined by market supply and demand.

As the floating band of the Chinese currency widens, “we have been able to maintain the yuan’s exchange rate broadly stable at a reasonable and equilibrium level thanks to the sound eco- nomic fundamentals,” Li said.

“So we believe that China will be able to continue to contribute to the stability of the global currency system,” said Li.

The nation still has the largest foreign exchange reserves in the world, sufficient to pay for imports and repay shortterm external debts, Li said, “China’s foreign exchange reserves are way above the international standard.”

In February, reserves rose for the first time in eight months, rebounding above $ 3 trillion, according to a statement on the website of People’s Bank of China.

The yuan has a solid presence in the international currency system and its exchange rate will remain generally stable, according to Li.