China’s central bank chief Yi Gang has warned of financial risks. At a press conference on the occasion of the annual meeting of the People’s Congress in Beijing, the governor today pointed to a „very turbulent global economy,“ the ongoing trade war between China and the US, and many dangers in the Chinese financial system.
China is facing „more challenges and changes“ this year. In the negotiations with the United States over the end of the war, the exchange rate of the Chinese currency also played a role, as in previous talks between the two countries, the central bank chief reported. „Our two countries have reached consensus on important issues,“ the central bank chief said, without giving details.
No currency depreciation as a competitive advantage
He pointed out that both sides had argued, among other things, about their obligation within the group of large business nations (G20) not to devalue their currencies in order to gain advantages in trade competition.
In the US, there are repeated allegations that China is weakening its currency in order to promote its exports. However, according to experts, Beijing is making efforts to ensure that the exchange rate of the yuan against the US dollar does not fall even faster.
