ET Net News Agency, 9th - The People's Bank of China (PBOC) released a document denying claims that the RMB exchange rate is undervalued, stating that exchange rate adjustments cannot resolve the structural issues behind global economic imbalances. The Shanghai Composite Index opened lower for the second consecutive day after the holiday, down 0.2% to 3804.09 points this morning, while the Shenzhen Component Index fell 0.51% and the ChiNext Index dropped 0.5%. At the market opening, optical modules and the semiconductor supply chain continued weakening, whereas media & entertainment and agribusiness stocks performed strongly.
On Thursday (8th), the PBOC issued a document clarifying its policy stance on the RMB exchange rate, stating, "China has neither the need nor the intention to gain trade advantages through currency depreciation." It added that the root of China's trade development lies in the improvement of international competitiveness in industries. Attributing complex international monetary system and structural economic issues simply to the RMB exchange rate reflects some countries shirking and avoiding their own adjustment responsibilities, which does not help solve problems.
The PBOC emphasized that global economic imbalances result from the evolution of industrial division patterns, inherent contradictions in the international monetary system, and national investment-savings imbalances, and are not solely the responsibility of surplus or deficit countries, requiring joint efforts from all parties.
The RMB exchange rate has become a friction point in Sino-European relations. The statement was released as European Commission Trade and Economic Security Commissioner Šefčovič began his visit to China, and Chinese Minister of Commerce Wang Wentao held talks with him in Beijing on the 8th.
Additionally, the PBOC conducted a 2-billion-yuan (RMB, same below) 7-day reverse repo operation today, while 606 billion yuan of overnight reverse repos matured in the open market, resulting in a net withdrawal of 604 billion yuan today. (ry)
On Thursday (8th), the PBOC issued a document clarifying its policy stance on the RMB exchange rate, stating, "China has neither the need nor the intention to gain trade advantages through currency depreciation." It added that the root of China's trade development lies in the improvement of international competitiveness in industries. Attributing complex international monetary system and structural economic issues simply to the RMB exchange rate reflects some countries shirking and avoiding their own adjustment responsibilities, which does not help solve problems.
The PBOC emphasized that global economic imbalances result from the evolution of industrial division patterns, inherent contradictions in the international monetary system, and national investment-savings imbalances, and are not solely the responsibility of surplus or deficit countries, requiring joint efforts from all parties.
The RMB exchange rate has become a friction point in Sino-European relations. The statement was released as European Commission Trade and Economic Security Commissioner Šefčovič began his visit to China, and Chinese Minister of Commerce Wang Wentao held talks with him in Beijing on the 8th.
Additionally, the PBOC conducted a 2-billion-yuan (RMB, same below) 7-day reverse repo operation today, while 606 billion yuan of overnight reverse repos matured in the open market, resulting in a net withdrawal of 604 billion yuan today. (ry)
