The People's Bank of China has pushed back against European Union claims that the yuan's exchange rate is responsible for global trade imbalances.
Key facts
- •The People’s Bank of China formally rejected assertions that the yuan is undervalued.
- •The rejection occurred as trade talks between China and the European Union commenced.
- •EU officials have increasingly cited the yuan's exchange rate as a cause of trade imbalances.
- •The Chinese central bank stated that exchange-rate adjustments cannot fix structural global economic imbalances.
China’s central bank has officially rejected claims that the yuan is undervalued. The statement from the People’s Bank of China comes as trade negotiations between China and the European Union begin, amid growing pressure from EU officials regarding the impact of the exchange rate on trade imbalances.
Central Bank Position on Trade
The People’s Bank of China maintains that adjustments to the exchange rate will not effectively resolve structural imbalances within the global economy. This stance counters the arguments of European Union officials, who have increasingly pointed to the yuan's valuation as a primary driver of current trade disparities.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Bloomberg Markets.
