China is not going to devalue its national currency, yuan, for solving domestic economic problems, Chinese President Xi Jinping said on Friday at the opening ceremony of the second Belt and Road forum in Beijing
BEIJING (Pakistan Point News / Sputnik - 26th April, 2019) China is not going to devalue its national currency, yuan, for solving domestic economic problems, Chinese President Xi Jinping said on Friday at the opening ceremony of the second Belt and Road forum in Beijing.
"China will not devalue the Yuan in order to solve its problems. We will constantly improve the mechanism of the yuan exchange rate formation, so that the market plays a crucial role in the distribution of resources. We will maintain the yuan rate at the balanced stable level," Xi said.
In August 2015, the People's Bank of China weakened the yuan rate by 3 percent against the US Dollar to the level of 6.4 on the dollar, shocking global stock markets. Later, the Chinese authorities took efforts to stabilize the national currency. Three more waves of devaluation of the Chinese Currency followed in the winter of 2015-2016 (to 6.55 yuan per dollar), in July 2016 (to 6.67 yuan per dollar), while the third one began in October 2016. The current rate is 6.74 yuan per dollar.
After the first wave, experts argued that the People's Bank of China deliberately devalued the yuan to stimulate exports. Chinese authorities have denied these claims.
This year's Belt and Road Forum is being held from Thursday to Sunday. The event is dedicated to Beijing's Belt and Road Initiative which seeks to bring trade and transportation infrastructure development across Asia, Russia, Europe and the middle East.
