Comments by PBOC governor, Yi Gang
- China won't engage in competitive currency devaluation
- Will not use yuan as a tool to cope with external disturbances, such as trade tensions
- Says that fluctuations in the yuan exchange rate are driven by the market
- Will keep yuan exchange rate stable on a balanced and reasonable level
- Will maintain stability and consistency of FX management policies
- Confident that the yuan will continue to be a strong currency
That remains the "official" tagline by China since about forever now but really, we all know what's up. To attribute the yuan weakening beyond 7.00 per dollar today after Trump's latest tariffs escalation to be a coincidence is a bit too far-fetched.
