Translation. Region: Russian Federal
Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
BEIJING, July 14 (Xinhua) — China does not seek to gain an international competitive advantage through currency devaluation, Zou Lan, deputy governor of the People's Bank of China (PBOC, central bank), said at a press conference on Monday.
As he noted, the US dollar index and US Treasury yields have recently experienced increased volatility, which has led to side effects on global financial markets.
On the contrary, China's financial market has shown strong resilience and is functioning stably overall, Zou Lan noted. Since the publication of a joint statement on the results of the Sino-American trade and economic talks held in Geneva in May, the yuan to dollar exchange rate has shown two-way fluctuations, steadily remaining below 7.2 yuan per dollar.
"The dynamics of the US dollar currently remain uncertain, while China's domestic fundamentals continue to improve. The yuan exchange rate continues to fluctuate in both directions, with a solid foundation for maintaining basic stability," Zou Lan said.
Major developed economies have entered a cycle of interest rate cuts and market expectations for renewed monetary easing by the U.S. Federal Reserve are growing, with the interest rate differential between China and the United States expected to show a narrowing trend, the vice governor added.
According to him, China's balance of payments is generally balanced, the financial market is functioning stably, and significant progress has been made in building the foreign exchange market.
Zou Lan assured that the PBOC will remain committed to the decisive role of the market in determining the exchange rate, maintain exchange rate flexibility, strengthen expectations management, prevent the risk of excessive fluctuations, and maintain the overall stability of the yuan at a reasonable and balanced level. –0–
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