China’s major banker made a vigorous attempt to reassure the country’s key trading partners that the Asian country’s government isn’t going to drastically weaken the Yuan and Beijing boasts enough good tools to back up the national economy.
The governor of the People’s Bank of China, Zhou Xiaochuan has just informed at a news conference ahead of Friday evening’s gathering of finance leaders of the Group of 20 huge economies that China isn’t going to take advantage of competitive devaluation in order to greatly boost export competitiveness.
These days China is a number one global concern to be discussed at the upcoming G-20, where well-known policy makers are supposed to wrestle with how to cope with global weakness, including slumping currencies, oil prices, interest rates and trade.
Apart from that, Zhou added that recent fluctuations in China’s capital flows should be regarded as quite normal and the key to blocking outflows is to ensure a healthy development of the national economy.
By the way, Zhou spoke in Chinese at this news conference, though the speech was delivered in English to investors. That was a huge attempt to have them reassured that China’s economy is still fundamentally healthy.