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This would apparently not have prevented the White House from asking for badurances that there would be no devaluation, but that the search for the stability of the yuan by the United States is "superfluous", according to Vishnu Varathan, responsible of economics and strategy at Mizuho Bank.
"The fact is that the PBoC is also looking for a stable CNY," he said, using the abbreviation of three letters designating the Chinese yuan (also called renminbi, or RMB).
The second largest economy in the world is about to open up its financial sector and also encourages more widespread use of the yuan. It is therefore in China's interest to maintain monetary stability, as Beijing opens domestic markets to international investment, said Tuan Huynh, director of investment for Asia-Pacific at Deutsche Bank Wealth Management.
"The idea of devaluing the CNY as a (mercantilist) strategy is not only outdated, but is also misguided," Varathan said. "Beijing's fight at the margin is to prevent an excessive and sudden slide of the CNY (caused by the commercial risks between the United States and China, which could trigger capital outflows and a market vacillation badets). " Editor's Note: Varathan included the parentheses above in his comments by email to CNBC.
"The risk that Beijing is engaging in a devaluation of the CNY is an overestimated, if not imagined, risk," he said.
The Chinese authorities also dismissed these concerns at a press conference on Wednesday, following a Bloomberg report that sources close to the trade talks said the Trump team was calling on China to maintain the stability of the yuan.
"First, China, as a major responsible country, has clearly reaffirmed its position that it will not engage in a competitive devaluation.Secondly, we will not use the RMB exchange rate as a tool in the midst of trade disputes, "said Chinese Foreign Ministry spokesman Geng. Shuang.
"Third, we hope that the United States will be able to respect the law of the markets and the objective facts, and refrain from politicizing the exchange rate problems."
Jameel Ahmad, global head of monetary strategy and market research at FXTM currency broker, echoed this sentiment, saying the idea of a Chinese devaluation did not deserve attention "Nowadays."
A neutral observer would rather expect Beijing to "prefer the strength of the Chinese currency because of the impact it can have on risk appetite and emerging market sentiment."
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