No basis for 'further depreciation' of currency: China

China today said there is no basis for "further depreciation" of its currency but asserted that it would continue to pursue market-based exchange rate reform.
"There is no basis for persistent RMB depreciation. China will continue to pursue market-based exchange rate reform and maintain the RMB exchange rate basically stable at a reasonable and equilibrium level," Xiaochuan Zhou, Governor People's Bank of China, said in his address to the International Monetary Financial Committee.
Zhou said recent movements in the Renminbi (RMB) exchange rate reflected well, the managed floating exchange rate regime based on market supply and demand and with reference to a currency basket.

The RMB has remained basically stable against a basket, he said, adding that at present, China still runs a large current account surplus, inflation remains at a low level, growth remains relatively strong and international competitiveness stays strong.
In his address, Zhou asserted that since the beginning of 2016, growth in China has remained firm, with key indicators showing signs of improvement.
GDP grew by 6.7 per cent in the first quarter year-on- year, with retail sales of consumer goods posting a stable year-on-year growth of 10.7 per cent, he said.

"China, in a 'New Norm' of medium-to-high growth, continues to make notable contribution to global growth," Zhou said, adding that China's real GDP growth rate was 6.9 per cent in 2015, within the target range and fairly high globally, contributing 25 per cent to global growth.

While the economy is slowing down, its structure and quality have improved, he said.
Zhou said the growth drivers have remained strong and sound fundamentals will continue to support long-term growth.
"There is a strong basis to turn massive savings into investment demand and the progress in industrialisation and urbanisation will generate fresh demand for investment and consumption," he said.
"As a middle-income country, China's per capita income has a large potential to continue growing. Furthermore, the government has adopted a series of measures, such as market opening-up, mass entrepreneurship and innovation, high- technology industry development, structural adjustment, as well as reform and development of the capital market and the banking system, all of which will inject fresh vitality to the economy," Zhou asserted.

In his address, Xiaochuan Zhou Governor of the People's
Bank of China, assured the international community that all is well with his country.
"Since the beginning of 2016, growth in China has remained firm, with key indicators showing signs of improvement. GDP grew by 6.7 per cent in the first quarter year-on-year, with retail sales of consumer goods posting a stable year-on-year growth of 10.7 per cent," he said.
"While the economy is slowing down, its structure and quality have improved," Zhou said adding that the growth drivers have remained strong and sound fundamentals will continue to support long-term growth.

Zhou told the IMF that China will continue to implement the prudent monetary policy in a flexible and appropriate way, to keep adequate liquidity and maintain proper growth of credit and aggregate financing.
"The Chinese government will also strengthen structural reforms, particularly on the supply side, to strike a better balance among economic growth, structural adjustment, and risk prevention, with a view of achieving sustainable growth," he said.