MNI BRIEF: China Not Seeking Yuan Depreciation Advantage

China does not seek international competitive advantage through yuan depretiation and remains committed to the decisive role of the market in the exchange rate, Zou Lan, vice governor of the People’s Bank of China, told reporters on Monday.

Zou noted the dislocation in monetary policy cycle between China and the U.S. will be improved and the interest rate gap will narrow if the Federal Reserve cuts interest rates in line with growing market expectations. 

China’s economy will face headwinds in the second half as export demand weakens and property remains subdued, policy advisors and economists recently told MNI. (See: MNI: China's GDP Faces H2 Growth Challenges)