Premier: China won't devalue yuan to boost exports

Markets Associated Press

China's top economic official says Beijing has no plans to devalue its yuan to boost exports and will keep its exchange rate "generally stable."

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Premier Li Keqiang's comments at a news conference Wednesday follow heavy spending by the central bank in currency markets to shore up the yuan's exchange rate against the dollar. Regulators also are trying to stanch a multibillion-dollar outflow of capital from the economy.

Li said, "China has no intention to devalue its currency to boost exports."

The premier said Beijing will push ahead with market-oriented reforms of its mechanism for setting the yuan's exchange rate.

He said the exchange rate "will remain generally stable."

The premier said China still has the world's biggest foreign exchange reserves and has more than enough for normal business activity.