Xi Jinping vows not to further devalue yuan as currency approaches stability: Obama

Chinese President Xi Jinping has pledged to avoid further lowering the value of the yuan against the US dollar, President Barack Obama said Friday.

The central bank of the world’s second-largest economy in August abruptly devaluated the yuan in a bid to prop up the slowing economy, triggering volatility in financial market and feuelling concerns about the global outlook.

“President Xi discussed his commitment to accelerate market reforms, avoid devaluing China’s currency, and have China play a greater role in upholding the rules-based system,” Obama told a joint press conference with Xi after their talks at the White House.

The United States “very much” supports the steps, Obama said. The US government has urged China to raise the transparency of its foreign exchange policy and let the market decide the value of currencies.

“The renminbi exchange rate after reform has experienced a certain degree of fluctuation,” Xi said through an interpreter.

“However, there is no basis for the renminbi to have devaluation in the long run. At present, the exchange rate between renminbi and US dollars is moving toward stability,” Xi said.