No intention to boost exports with yuan devaluation

China does not intend to use a cheaper yuan as a way to boost exports and has the tools to keep the currency stable, Chinese Premier Li Keqiang said in a meeting with the president of the European Bank for Reconstruction and Development. "China has no intention of stimulating exports via competitive devaluation of currencies," the premier said in Beijing.

Li added that China is capable of keeping the yuan's exchange rate basically stable at an appropriate and balanced level, Xinhua reported. After a nearly three per cent devaluation in mid August 2015 which rattled markets, China's yuan has fallen over one per cent so far in 2016. Despite recent declines, China has the world's largest foreign exchange reserves.