China’s central bank has rejected claims that the country manipulates its currency to gain a trade advantage. In a position paper released on Thursday, the People’s Bank of China (PBOC) stated that China has no need to weaken the yuan to boost competitiveness and has never deliberately devalued its currency.
The report came as China and the European Union began a new round of trade talks. European officials have increasingly called for a stronger yuan to help reduce the EU’s growing trade deficit with China.
The PBOC argued that global economic imbalances stem from deeper issues, including flaws in the international monetary system and high fiscal deficits in some countries. The bank did not directly address the EU’s concerns but emphasized that currency issues are part of broader economic challenges.