‘Mar­ket to play de­ci­sive role in yuan ex­change rate’

Times of Oman - - MARKET -

NUSA DUA, In­done­sia: China’s cen­tral bank gov­er­nor Yi Gang said the govern­ment would con­tinue to let the mar­ket play a de­ci­sive role in es­tab­lish­ing its cur­rency ex­change rate, re­frain­ing from us­ing it as a weapon, amid an es­ca­lat­ing trade war with the United States.

“We will not en­gage in com­pet­i­tive de­val­u­a­tion, and will not use the ex­change rate as a tool to deal with trade fric­tions,” Yi said in an In­ter­na­tional Mone­tary and Fi­nan­cial Com­mit­tee (IMFC) state­ment posted on Satur­day dur­ing the IMF and World Bank an­nual meet­ings in In­done­sia’s re­sort is­land of Bali.

Yi said the govern­ment would keep the ex­change rate “broadly sta­ble”, and China’s mone­tary pol­icy would re­main neu­tral with more fo­cus on guid­ing ex­pec­ta­tions.

US Trea­sury Sec­re­tary Steven Mnuchin said Chi­nese of­fi­cials had told him that fur­ther yuan de­pre­ci­a­tion was not in China’s in­ter­est.

Mnuchin has re­it­er­ated his con­cerns that a ma­jor drop in the yuan’s value this year against the dol­lar could be part of an ef­fort to gain a trade ad­van­tage for Chi­nese ex­ports or to off­set the im­pact of U.S. tar­iffs.

In a sep­a­rate in­ter­view with do­mes­tic me­dia pub­lished on Satur­day, Yi said the cen­tral bank did not fol­low a rate hike by the Fed in Septem­ber with one of its, as he felt China’s mar­ket-based rate lev­els were ap­pro­pri­ate and the yuan re­mained steady judg­ing by its per­for­mance.

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.