China Reiterates It Won't Use Yuan Rate as Tool in Trade War

PBOC Reiterates China Won’t Use Yuan Rate As Trade War Tool
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China won’t use competitive currency devaluation or the foreign exchange rate as a tool to cope with trade frictions, according to a senior central bank official.

“The yuan’s exchange rate is decided by the market,” Li Bo, director of the People’s Bank of China’s monetary policy department, said at a press conference in Beijing. He said the currency has more flexibility this year and the central bank is confident of keeping the rate “basically stable at a reasonable equilibrium level.”