China Will Not Devalue Yuan Amid Trade Dispute, PBOC Governor Says

China Will Not Devalue Yuan Amid Trade Dispute, PBOC Governor Says

Liao Shumi

Date: Wed, 04/11/2018 - 22:29 / source:Yicai
China Will Not Devalue Yuan Amid Trade Dispute, PBOC Governor Says
China Will Not Devalue Yuan Amid Trade Dispute, PBOC Governor Says

(Yicai Global) April 11 -- China will not resort to devaluating the yuan in an effort to resolve trade disputes, the new head of the country’s central bank at the Boao Forum today.

The People’s Bank of China will continue to prioritize the domestic macroeconomic situation as well as the real economy when formulating monetary policy, said Yi Gang, the institution’s recently appointed governor at the Boao Subforum on Normalization of Monetary Policy held in Qionghai in the southern island province of Hainan.

Concluding today, the Boao Forum, China's answer to the Davos World Economic Forum, brings together leaders from government, business and academia from Asia and other continents to share their vision for the most pressing matters facing the region as well as the world as a whole.

“China is implementing a prudent monetary policy without any quantitative easing or zero interest-rate policies,” Yi said, adding that major central banks are tightening interest rates globally while also starting to curtail expansion and shrink balance sheets.

“The country had been expecting such policies for a long time and is ready for them,” Yi added.

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Keywords: Depreciation, monetary policy, Trade Dispute