China Premier Li Pledges Stable Yuan, No Competitive Devaluation
- PBOC staged surge in offshore yuan rates to limit outflows
- Chinese confidence in currency sags amid sluggish growth
Currency Check: What's Next for the Yuan?
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China Premier Li Keqiang pledged a "stable" yuan exchange rate after a volatile week in which offshore interbank borrowing costs in Hong Kong surged to a record as the country’s central bank sought to force a narrowing of its discount to the mainland rate.
"China has the ability to continue to maintain the yuan exchange rate basically stable at a reasonable and balanced standard," Li said in comments posted on a government website Friday. "China has no intention of stimulating exports through competitive currency devaluation. There’s no basis for a continued depreciation of the yuan exchange rate."