The Chinese central bank said it will not use the yuan as a method to cope with trade tensions, media reports said, citing its quarterly monetary policy report.
The People's Bank of China said it would not competitively devalue the yuan, nor use it as a way to cope with trade tensions, even as the central bank noted that it observes risks from increasing trade tensions, emerging market financial volatility and global financial fragility, Bloomberg News reported Aug. 11, citing a PBOC report released Aug. 10.
The central also said it would not adopt any "strong" economic stimulus, and will instead take a hands-off approach to the foreign exchange market on normal days, but will intervene only in case of massive fluctuations, chief macroeconomy analyst Zhu Qibing at BOC International China said.
"Policies will be preset or fine-tuned based on changing situations, and attention will be paid to stabilize and guide expectations," the PBOC said, as cited in a China Daily report.
Prudent monetary policy should maintain neutrality and "keep balance between tightening and easing," the Chinese central bank said.
Further, the PBOC said it will be firm in implementing structural deleveraging and intensify efforts in combating financial risks and preventing systemic financial risks, the China Daily report said.