China's wont devalue currency to boost exports

CHINESE President Xi Jinping pledged Tuesday to not push the value of the yuan currency lower just to strengthen Chinese exports.

Speaking to a large audience of US businessmen and state officials with strong interests in Chinese commerce, Xi said the government was sticking to its plan to let the yuan, or renminbi (RMB), eventually adjust by market forces.

The modest August devaluation of the currency, which shook international markets, "achieved initial success in correcting the exchange rate deviation," he said.

"Given the economic and financial situation at home and abroad, there is no basis for continuous depreciation of the RMB."

"We are against competitive depreciation or currency war. We will not lower the RMB exchange rate to boost exports."

Xi made the comments in a speech on the first day of a state visit to the United States.

AFP