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China will not pursue competitive devaluation of yuan: Premier Li

Source: Xinhua| 2018-09-19 15:37:29|Editor: ZX
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TIANJIN, Sept. 19 (Xinhua) -- China will stick to market-oriented reform of the exchange rate formation mechanism and will not pursue competitive devaluation of its currency, Premier Li Keqiang said Wednesday.

"China will create conditions for a stable exchange rate," Li said at the opening plenum of the Annual Meeting of the New Champions 2018, also known as Summer Davos, in Tianjin.

The yuan exchange rate has shown signs of fluctuations recently, raising concerns that China is devaluing the currency on purpose.

"It is not true, as one-way devaluation of the yuan will bring China more drawbacks than benefits," Li said. "China's economic fundamentals are solid, with a sound balance of international payments and sufficient foreign exchange reserves. The yuan exchange rate therefore is fully capable of remaining basically stable at a reasonable and balanced level."

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