Source: China Daily – China well-prepared for currency war: official
China is fully prepared for a looming currency war should it, though “avoidable,”really happen, said deputy governor of China’s central bank Yi Gang.
Yi, vice governor of the People’s Bank of China, made the comment amid widespread concerns that the world’s major economies would drive down their units to gain a trade advantage through monetary easing policies.
G20 members promised that they would not wage a currency war, but none have shown signs of scaling back monetary easing that has injected a flood of cash into global markets. They worry that removing the stimulus will plunge their economies into another recession.
“China is fully prepared,” Yi said. “In terms of both monetary policies and other mechanism arrangement, China will take into full account the quantitative easing policies implemented by central banks of foreign countries.”