Premier Li tells IMF's Lagarde renminbi will stay stable

(CHINADAILY)TheChinesegovernment"hasnointentiontoboostexportsbydevaluingtherenminbi,nottomentionwagingatradewar",PremierLiKeqiangtoldInternationalMonetaryFundchiefChristineLagardeduringatelephonecallonThursdaymorning.

LialsosaidChina"isabletomaintaincontinued,steadygrowthofitseconomy"intheirconversationabouttheeconomicandfinancialsituationinChinaandaroundtheworld.

ObserverssaidLi'scommentswillhelpdismissdoubtsinthemarketoverallegedcurrencymanipulationbyChinaanditsfutureeconomicprospects.Thecountry'seconomy,whichgrewby6.9percentlastyear,stillfacesdownwardpressure.

"Thefactisthattherenminbiexchangeratehasremainedbasicallystableagainstabasketofcurrencies,andthereisnobasisforcontinuousdepreciationoftherenminbi,"Lisaid.

Chinawill"presssteadilyaheadwiththereformofmechanismtoformulatetheyuanexchangerate",reinforceitscommunicationwiththemarketandkeeptheyuanexchangeratebasicallystableatanappropriateandbalancedlevel,Liadded.

LagardesaidshebelievedtheChinesegovernmentcouldmaintainsteadyeconomicgrowththroughmeasuressuchasstructuralreform,keepingtheexchangeratepolicystableandboostingcommunicationwiththemarket.

TheIMFiswillingtofurtherstrengthencommunicationandcooperationwithChina,sheadded.

AddressingapaneldiscussioninDavos,Switzerland,lastweek,LagardesaidChina'spolicymakershaveshown"unbelievabledetermination"todeliverreformsinthepast,Bloombergreported.

ChenFengying,aseniorworldeconomyresearcherattheChinaInstituteofContemporaryInternationalRelations,saidLagardeandtheIMFareimportantchannelsforChinatosendsignalstotheworldmarketinsuchacriticaltime.

"Asuncertaintiescloudthemarket,LihasstatedChina'sconfidenceintheeconomyandcurrency.Withoutsuchremarks,thestockandcurrencymarkets'confidencecouldbemorevulnerable,"Chensaid.