China does not seek trade advantages via currency devaluation: central bank governor

BEIJING - China has no need or intention to seek competitive edges in foreign trade through the depreciation of its currency, China's central bank governor said Friday.

Pan Gongsheng, governor of the People's Bank of China (PBOC), made the remarks at a press conference on the sidelines of the fourth session of the 14th National People's Congress.

The PBOC has always upheld the decisive role of market forces in exchange rate formation, maintained exchange rate flexibility, strengthened expectation management, and kept the yuan's exchange rate generally stable at an adaptive, balanced level, Pan told the press.

Under certain circumstances, macro-prudential management tools will be employed to curb "herd behavior" and negative self-reinforcing dynamics in the market, he said, citing the recent adjustment in the foreign exchange risk reserve requirement ratio for forward forex sales.

Noting that the factors influencing exchange rates are complex and highly uncertain internationally, Pan said participants in China's foreign exchange market have become more mature, and the market has shown greater resilience.

With more enterprises using exchange rate hedging tools or settling cross-border trade in yuan, over 60 percent of China's import and export activities are effectively shielded from exchange rate volatility -- a figure expected to rise further this year, he revealed.