China’s central bank published a position paper on the yuan exchange rate on Thursday, arguing that China has no need to gain a competitive edge through devaluing its currency and has never resorted to deliberate devaluation.
The report was published on the same day that China and the European Union kicked off a fresh round of trade talks, with growing European calls for a stronger yuan to help address the bloc’s widening trade deficit with China.
“Global economic imbalances are deeply intertwined with shifting global division of labour, inherent flaws in the international monetary system, and persistently high fiscal deficits and high consumption in some countries,” the People’s Bank of China (PBOC) said.
