Accusations of China manipulating the renminbi exchange rate are unfair and not objective, the Ministry of Commerce (MOC) said Thursday.
China has been working on improving the market-based RMB exchange rate regime since 2005 and the Chinese yuan has significantly appreciated, according to a research report on Sino-U.S. economic and trade relations released by the MOC.
The central bank's foreign exchange open market operation did not fall into the scope of exchange rate manipulation, the MOC pointed out.
China's efforts to balance improving exchange rate flexibility and maintaining exchange rate stability have effectively avoided the negative spillovers from the disorderly adjustment of the RMB exchange rate and the competitive devaluation of major currencies, benefiting the international community, including the United States, the MOC added.
China will refrain from competitive currency devaluation, and while maintaining the basic stability of the RMB against a basket of currencies, the Chinese government will also work to ensure the RMB exchange rate against the U.S. dollar will float in both directions in a more flexible way, the report said.
China's economic fundamentals remain sound and there is no basis for long-term depreciation of the yuan. The RMB exchange rate is sure to gradually reach a new equilibrium after a fluctuation period, the report added.