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Thursday, March 24, 2016, Chaitra 10, 1422 BS, Jamadius Sani 14, 1437 Hijri

IMF denies pressing China for more currency data
Published :Thursday, 24 March, 2016,  Time : 12:00 AM  View Count : 26

BEIJING, March 23: The IMF on Tuesday said it has not asked China for "any additional information" on the currency operations in the world's second biggest economy.
Refuting media report in this regard, an IMF spokesperson said in a statement: "China subscribed to the Special Data Dissemination Standard (SDDS) at the end of 2015 and is disseminating its data accordingly."
"The Fund has not asked for any additional information," China's state-run Xinhua quoted the statement as saying.
The statement came in response to a US media report stating that the IMF has called on the Chinese central bank to release more data on its holdings of derivatives such as forwards.
Meanwhile, Chinese Premier Li Keqiang in his meeting with IMF Chief, Christine Lagarde voiced China's disapproval of any "currency war," as it would not help global economic recovery.
China has no intention to boost exports by devaluating the yuan, as this is not conducive to China's economic transformation either, Li told Lagarde when she called on him here on Monday.
Li said China will continue to push forward with financial market reform and construction of legal system, and press ahead with developments to the yuan exchange rate formation mechanism in line with the principles of independence, gradualism and controllability, state-run media reported.
China will, according to its economic fundamentals and the need to maintain financial stability, make the exchange rate of yuan float in two ways within a reasonable range, and maintain the exchange rate "basically stable at an adaptable and equilibrium level," Li said.
China's move last year to devalue its currency nearly four per cent has sent world markets in a tizzy.
It was stated as a move to increase the value of its exports, which Chinese officials denied.
Chinese economy last year has slowed down to 6.9 per cent, its weakest growth in a quarter century. The government has cutdown growth target to 6.5 per cent for this year.
In his meeting with Lagarde, Li also vowed that China is capable of preventing regional and systemic financial risks.
He said that most of China's big commercial banks are state-owned.
The government's debt ratio, especially that of the central government is comparatively low while the people's saving rate is comparatively high.
Lagarde, who is here for the China Development Forum, spoke highly of China's 13th Five-year Plan, saying it will help China's economy continue to play a leading role in world economic development, the report said.
She also praised China's recent policy communication on the exchange rate of yuan as effective, as it strengthened the international market's confidence.    ?PTI

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