China says its exports hurt by foreign currency devaluations

Beijing

THE devaluation of currencies by some countries has led to sharp gains in the yuan which are hurting the competitiveness of Chinese exports, the commerce ministry said on Tuesday. It did not identify the countries which it said were devaluing currencies, while promising China would keep the yuan at a "basically stable" level.

The effective exchange rate of the yuan climbed 6.4 per cent against a basket of currencies in 2014 and rose another 4.2 per cent in the first three months of this year, it said.

The yuan has been more subdued against the US dollar, down 2.5 per cent in 2014 and flat so far this year.

"In the current state of economic downturn, some countries have used their exchange rates as an important tool to boost exports, stimulate the economy and push for currency devaluation," the ministry said.

"That has led to a sharp appreciation in the renminbi, and seriously affected the international competitiveness of China's export products," it said, adding that Chinese exports faced rising pressure. REUTERS