Devaluation of yuan not on agenda: Chinese minister
Beijing: As China is preparing to host a meeting of G20 central bankers and finance ministers in Shanghai, a proposal to devalue the yuan is only “media hype”, said Finance Minister Lou Jiwei.
“There isn’t such an item on the agenda,” Lou said on Wednesday.
According to Beijing-based private-sector consulting firm Anbang, China has “no interest whatsoever” in the rumoured proposal by international bankers, the People’s Daily reported.
In the run-up to the meeting scheduled for Friday and Saturday, Chinese policymakers said they would like to see the participants devote more time and energy on rebooting global economic growth rather than focus on short-term deals that may result in more uncertainties and not solve any problems.
In Shanghai, the G20 central bankers and finance ministers will concentrate on topics including global growth, infrastructure investment, the reform of global financial governance, restructuring of sovereign debt, global tax cooperation and the financing of environmental programs, according to Chinese media reports.
As for a one-off revaluation of the yuan, Lu Feng, an economics professor with Peking University, said it is “simply implausible”.
A radical devaluation or major rise in the yuan will not serve the interests of any major economy, Lu said.
China will not experience a major collapse because of a recent increase in capital outflows, as long as good investment opportunities exist in the country.
If the two largest economies, China and the US, can maintain growth, there is still a chance that the global economy will avoid another crash, Lu added.