MNI POLICY: Chinese Yuan To Be Stable Despite U.S. Criticism

     BEIJING (MNI) - The recent fluctuation of Chinese yuan is driven by market

forces, which is affected by the trade war initiated by the U.S., said Ruan

Jianhong, director of the Survey and Statistics Department of the People's Bank

of China (PBOC) on China Central Television, criticizing the U.S. labeling China

as a currency manipulator only based on such short-term fluctuations.

     China's current account surplus accounted for less than 0.4% of GDP, and

Chinese net purchases of foreign exchange in 12 months accounted for -0.2% of

GDP, said Ruan citing a report by the U.S. Department of Treasury published in

May. These two indicators show there is no inappropriate behavior by China, Ruan

added.

     China's FX policy will remain stable, ensuring the normal use of FX for

companies and individuals, said Wang Chunying, chief economist and spokeswoman

of the State Administration of Foreign Exchange.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

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

[TOPICS: M$A$$$,M$Q$$$,MGQ$$$]