China Central Bank Official: We Were Wronged

27-Aug (FoxBusiness) — China’s devaluation of its yuan currency should not be made a scapegoat for the recent global stock market rout, a senior Chinese central bank official told Reuters on Thursday.

Instead, Yao Yudong, head of the bank’s Research Institute of Finance and Banking, said concerns over a possible U.S. interest rate rise this year may have fueled capital flight out of emerging markets.

He said the U.S. Federal Reserve should delay any rate hike to give fragile emerging market economies time to prepare.

“China’s exchange rate reform had nothing to do with the global stock market volatility, it was mainly due to the upcoming U.S. Federal Reserve monetary policy move,” Yao said.

“We were wronged.”

…”So we hope the Federal Reserve could further delay its interest rate rise, giving emerging markets ample time to prepare. The Fed should not only consider the U.S. economy, but should also consider the global economy which is very fragile,” he said in an exclusive interview.

[source]

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