China not to use RMB depreciation to boost exports: Ministry of Commerce

China not to use RMB depreciation to boost exports: Ministry of Commerce

Maintaining the basic stability of the RMB exchange rate is conducive to the development of foreign trade, and the Chinese government will not boost exports through depreciation of the RMB, said a spokesperson for China’s Ministry of Commerce on Nov. 10.

Commenting on the weakening "boost effect" of the depreciation of the RMB's exchange rate on China's exports, Shen Danyang said that the fluctuations of the RMB’s exchange rate against the U.S. dollar are consistent with that of other major currencies. The RMB’s effective exchange rate against a basket of currencies remained stable, Shen pointed out.

Shen stated that the depreciation or appreciation of the exchange rate is not a decisive factor for exports. It is also not a major factor affecting China's foreign trade, according to Shen's remarks.

"We have been stressing that changes in exchange rate constitute a double-edged sword for the development of foreign trade. In the context of weak global economic recovery and increasingly complex monetary policies, maintaining a relatively stable RMB exchange rate is conducive to the development of foreign trade. In other words, the Chinese government has no intention of boosting exports through depreciation of its currency," Shen stressed.