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

  • Beer at the barbershop? Relaxed B.C. liquor laws come into effect Monday

    Economic CTV News
    British Columbia small business owners and their clients say they’re excited about relaxed liquor regulations coming into effect on Monday. One of the biggest changes will allow any business to apply for a liquor licence. Source
  • Note 7 battery design and manufacturing caused fires: Samsung

    Economic CTV News
    SEOUL, Korea, Republic Of - Samsung Electronics Co. says problems with the design and manufacturing of batteries in its Galaxy Note 7 smartphones caused them to overheat and burst into fire. The announcement Monday of the company's investigation into one of its worst product fiascos comes three months after the flagship phone was discontinued. Source
  • Hackers claim to take down oil company website over soccer

    Economic CTV News
    LIBREVILLE, Gabon -- Hackers said they took out the website of French oil company Total on Sunday over its sponsorship of the ongoing African Cup of Nations soccer tournament in the central African country of Gabon. Source
  • Trump's victory creates uncertainty for wind and solar power

    Economic CTV News
    HONOLULU -- President Donald Trump has disputed climate change, pledged a revival of coal and disparaged wind power, and his nominee to head the Energy Department was once highly skeptical of the agency's value. What this means for states' efforts to promote renewable energy is an open question. Source
  • OPEC, allies says production cuts ahead of schedule

    Economic CTV News
    VIENNA -- OPEC and key non-OPEC oil producers are near their target of taking 1.8 million barrels of crude a day off global markets less than two months after agreeing to do so in efforts to push up the price of crude, Russia's energy minister said Sunday. Source
  • Non-browning apple coming to U.S. next month but Canada will have to wait

    Economic CBC News
    The genetically modified non-browning apples a B.C. man has been developing for more than two decades will finally show up on some U.S. produce shelves next month. But Canada will have to wait to take its bite. Source
  • Tax scams and testing 'the Trump effect': CBC Marketplace's consumer cheat sheet

    Economic CBC News
    Miss something this week? We got you. Here's this week's Marketplace cheat sheet. Get this in your inbox every Friday. Sign up for the Marketplace newsletter. Poor puppy Liza Shepherd holds up picture of Abby, the Bernese Mountain Dog cross that cost her $6,000 in vet bills. Source
  • How to fight back against rising bank fees on chequing accounts

    Economic CBC News
    Canada's big banks continue to enjoy big profits. But that hasn't stopped them from charging customers a host of personal banking fees. In fact, fees have become an ever more important part of their revenues. Source
  • Bogus bongs or bogus lawsuits? Pipe maker sues over fakes

    Economic CTV News
    FORT LAUDERDALE, Fla. -- Don't want to bum your buzz, but that expensive bong you got cheap to smoke your pot may be bogus. High-end German glass water pipe maker Roor and its American licensee are filing lawsuits against smoke shops and mom-and-pop convenience stores in Florida, California and New York. Source
  • 'There isn't a best card out there': How to choose a credit card that works for you

    Economic CBC News
    Credit cards are sometimes lambasted as high-cost consumer debt that can quickly get borrowers into trouble. But if you pay off the balance each month, credit cards can also have significant perks. Loyalty programs like Air Miles, which has both a standalone program and partnerships with credit cards, have drawn a lot of criticism lately, but Canadians are still attached to credit cards that offer rewards. Source