China central bank governor says market-determined exchange rate is working very well

BOAO: People's Bank of China Governor Yi Gang said on Wednesday the country's exchange rate mechanism had been working well and that it hadn't intervened in currency markets for a long time.

Yi was asked by a panel moderator at the Boao Forum for Asia in Hainan province whether China would devalue its currency to counter US tariffs.

In his response to the question, he said the exchange rate mechanism is "market-determined," working very well "and will continue working very well as it is." In the response, he did not say whether China would devalue its currency or not.

Yi also said that the yuan internationalisation process will be a natural process and that China and the United States should deal with trade issues in a "rational way".