China’s Central Bank: Global Imbalances Not the Sole Fault of Surplus or Deficit Nations

TREE NEWS update: The People’s Bank of China issued a policy statement on the yuan exchange rate, saying global economic imbalances stem from the evolution of industrial division of labor, inherent contradictions in the international monetary system and gaps between national investment and savings, and are not the unilateral responsibility of surplus or deficit countries. Deficit nations should pursue fiscal consolidation and raise savings rates and competitiveness, while surplus nations should boost consumption and investment. The PBOC said attributing complex structural issues solely to the yuan is a political maneuver under protectionism and unilateralism.