China rules out weakening yuan to boost trade

SHANGHAI -- China's central bank chief promised Friday to avoid weakening its yuan to boost sagging exports as he tried to reassure nervous financial markets about his government's handling of its economy and currency at the start of a closely watched gathering of global finance officials.

See Full Article

Beijing wanted to use the gathering of finance ministers and central bankers from the Group of 20 rich and developing countries to promote its campaign for a bigger voice in managing global trade and finance. Instead, the communist government is scrambling to defend its reputation for economic competence after a spate of stock market and currency turmoil.

A key worry, despite repeated Chinese denials, is that Beijing will allow its yuan to decline in value to support struggling exporters. That expectation has driven an outflow of capital from China that spiked to a record $135 billion in December.

"We will not resort to competitive depreciation to boost our advantage in exports," said Zhou Xiaochuan, governor of the People's Bank of China, at a news conference.

Zhou said the meeting of finance officials from the United States, Japan, Europe and other major economies should focus instead on managing lacklustre global demand, structural economic reforms and promoting "sustainable and balanced" growth.

Other officials attending the meeting include U.S. Treasury Secretary Jacob Lew and Federal Reserve Chairwoman Janet Yellen; China's finance minister, Lou Jiwei, and their counterparts from Germany, Britain, Japan, South Korea, India and South Africa.

Economists complain the secretive Chinese government has fueled market volatility by failing to communicate policy changes clearly.

In a report ahead of the Shanghai meeting, the IMF urged G-20 leaders to support China's economic reforms but also called on Beijing to "ensure clear communication of their exchange rate policies."

Other governments have tried to reassure markets their governments have the means to combat an economic slowdown. They also are trying to douse expectations the Shanghai meeting will produce specific growth plans similar to the ones rolled out in 2009 in response to the global crisis.

Lew said in an interview broadcast Wednesday by Bloomberg Television that the meeting would likely produce "a more stable understanding of what the future may look like," including greater clarity from Beijing about its plans.

However, Lew said he did not expect the discussions to produce specific plans of "what each country is going to do and how."



Advertisements

Latest Economic News

  • Unfair beer markup: Judge orders Alberta to pay out-of-province breweries $2M

    Economic CTV News
    CALGARY -- A judge has ruled the Alberta government's markup policy on craft beer is unconstitutional. Court of Queen's Bench Justice Gillian Marriott has awarded Toronto-based Steam Whistle Brewing and Great Western Brewing Co. Source
  • 'We want no part of it' : U.S. airlines refuse to transport migrant kids separated from parents

    Economic CBC News
    Major U.S. airlines are telling the White House that they don't want to participate in any transportation of migrant children who have been separated from their parents at border crossings. In a statement Wednesday, American Airlines said it doesn't know whether any migrant children have been on its flights, but it doesn't want to profit from the current immigration policy of separating families. Source
  • 'We want no part of it' : U.S. airlines refused to transport migrant kids separated from parents

    Economic CBC News
    Major U.S. airlines are telling the White House that they don't want to participate in any transportation of migrant children who have been separated from their parents at border crossings. In a statement Wednesday, American Airlines said it doesn't know whether any migrant children have been on its flights, but it doesn't want to profit from the current immigration policy of separating families. Source
  • The Mouse chases the Fox: Disney makes $71B US counteroffer for Twenty-First Century Fox

    Economic CBC News
    The mouse is chasing the fox. Disney is offering more than $71 billion US for Fox's entertainment businesses in a counterbid to Comcast's nearly $66 billion US offer . The battle for Twenty-First Century Fox reflects a new imperative among entertainment and telecommunications firms. Source
  • Canadian steel not a national security threat on its own: U.S. commerce secretary

    Economic CTV News
    OTTAWA -- The U.S. commerce secretary says Canada is not a national security threat and that a revitalized NAFTA could make the Trump administration's tariffs on steel and aluminum go away. Wilbur Ross also acknowledged Wednesday that the U.S. Source
  • PayPal blocks sales of school shooting video game

    Economic CTV News
    HARTFORD, Conn. -- The developer of a school shooting video game condemned by parents of slain children has lost the ability to sell its products online after being dumped by PayPal. Acid Software said Tuesday that purchases of "Active Shooter" were "temporarily disabled" as its representatives tried to resolve the issues with PayPal. Source
  • Aurora Cannabis to spin off U.S. holdings to publicly traded Australis Capital

    Economic CTV News
    EDMONTON -- Aurora Cannabis Inc. is planning to spin off its Australis Capital subsidiary as a separate entity that would focus primarily on investing in the U.S. cannabis and real estate sectors. The spin-off will be achieved by distributing shares and warrants of the new company -- to be listed on the Canadian Security Exchange. Source
  • Fed chair signals gradual rate hikes in tame inflation era

    Economic CTV News
    WASHINGTON -- The U.S. Federal Reserve will likely keep raising short-term interest rates at only a gradual pace, Fed chair Jerome Powell said Wednesday, partly because there are few signs, so far, that the ultra-low U.S. Source
  • Trudeau says pot will be legal as of Oct. 17, 2018

    Economic CBC News
    Prime Minister Justin Trudeau announced today that Canadians will be able to consume marijuana recreationally without criminal penalties starting on Oct. 17, 2018. Trudeau revealed the date during question period in the House of Commons. "We work in partnership with the provinces, and since we've passed these measures in Parliament we've been listening to the provinces who have been asking for more time to implement it," Trudeau said in French. Source
  • Amazon, Buffett, JPMorgan pick Gawande to lead health firm

    Economic CTV News
    Amazon, JPMorgan Chase and Berkshire Hathaway have picked well-known author and Harvard professor Dr. Atul Gawande to transform the health care they give their employees. The three corporate titans said Wednesday that Gawande will lead an independent company focused on a mission they announced earlier this year: figuring out ways to improve a broken and often inefficient system for delivering care. Source