China's central bank: Market forces to play key role in establishing Yuan rate

According to a Reuters report, China’s central bank governor Yi Gang said the government would allow market forces to play a key role in establishing the Yuan's currency exchange rate, and avoid using it as a weapon in the middle of an escalating trade war with the United States.

Oct 14, 2018 05:10 IST India Infoline News Service

China Yuan crash
According to a Reuters report, China’s central bank governor Yi Gang said the government would allow market forces to play a key role in establishing the Yuan's currency exchange rate, and avoid  using it as a weapon in the middle of an escalating trade war with the United States.

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

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.

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