Central bank head attributes RMB drop to external causes
Over the past 10 trading days, central parity of the RMB against the US dollar has fallen by 2,262 basis points
Recent fluctuations in the foreign exchange market are mainly due to factors such as US dollar rallies and external uncertainties, and some pro-cyclical behaviors, said Yi Gang, the governor of the Chinese central bank, Yicai.com reported.
Over the past 10 trading days, the central parity of the RMB against the US dollar has fallen by a total of 2,262 basis points.
Sun Guofeng, director of the Financial Research Institute of The People’s Bank of China, also said that the recent depreciation of RMB resulted from external uncertainties, and it is not intentionally guided by the central bank.
China adheres to the principals of multilateralism, globalization and free trade, as well as international standards, and thus will not use the RMB exchange rate as a tool to deal with trade disputes, Sun added.