Xinhua, China's state news agency, reports a Commerce Ministry spokesman (unnamed) as saying the recent yuan devaluation will have a limited impact on China's foreign trade.
- Said a country's exchange rate hinges on its competitiveness
- China's economic reforms will help ensure the yuan can remain "basically stable" within a "reasonable" and "balanced" level
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Earlier, China said the new rate setting regime (where the PBOC pays more attention to market currency movements) which resulted in the devaluation was a reform move toward freer markets.
FWIW, I'll give them that. They are taking steps that way. Next on the agenda, IMO, is a move to a 3% plus or minus daily band limit. I've no idea on when that might happen, though. Given the desire for reform in China, it can't be too far off.
