MNI POLICY: China 'Deeply Regrets' Currency Manipulator Label

     BEIJING (MNI) - China "deeply regrets" the U.S. government's decision to

label it a "currency manipulator", denies that it has used exchange rate as a

weapon to fight the trade war and reiterates it will keep the yuan basically

stable. 

     The decision by the U.S. Department of Treasury on Aug 6 was a "reckless

unilateralist and protectionist" move that wasn't in accordance with the

Treasury's own quantitative standard and "seriously violated global rules," the

People's Bank of China said in a statement on its website on Tuesday.

     Without specifying how China will fight back, the central bank said the

U.S. decision will cause big impact on the global economy and "serious negative

impact" on the stable functioning of global monetary systems. 

     While the U.S. has "endlessly escalated trade tensions" since 2018, China

won't engage in competitive devaluation, the PBOC repeated.

     China urges the U.S. to "pull the horse back from precipice" and stop

hurting others and itself, according to the statement. It will stick to a

floating forex management system with adjustment based on market demand and a

basket of currencies, the PBOC said. 

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

[TOPICS: M$A$$$,M$Q$$$,MC$$$$,MI$$$$]