BEIJING (Reuters) - A rise in the value of the yuan may intensify expectations for further increases and could lead to a worsening of China’s international payments imbalance, a regional central bank official said in comments published on Monday.
The comments by Xu Nuojin, deputy head of the People’s Bank of China (PBOC) Guangzhou, were published in the Financial News, a paper run by the central bank, and come amid growing pressure from Washington for faster yuan appreciation.
“Any efforts to address the international payments balance by adjusting the yuan exchange rate will achieve no results,” Xu wrote in an opinion piece.
He did not elaborate on the currency issue, but he added that China has to boost consumption and investment to address the problem of high savings levels in the Chinese economy.
Many Chinese economists and officials, like Xu, have reiterated their view that the yuan, also known as the renminbi, is not undervalued and should not be blamed for China’s trade and economic imbalances.
Reporting by Zhou Xin and Kevin Yao; Editing by Ken Wills