Beijing on Thursday agreed to stop interfering with the value of the yuan “as conditions permit,” representing a modicum of progress on an issue that has dogged US-China relations for years, Reuters reported. China’s Central Bank Governor Zhou Xiaochuan said China would allow supply-and-demand to play a bigger role in determining exchange rates. US officials say China deliberately holds down its currency to boost exports, an accusation China denies. Instead, China says its currency policy is aimed at promoting economic stability. Policymakers on both sides also agreed to avoid “competitive devaluation” of their currencies under a broader G20 deal.
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