BEIJING: The Chinese central bank defended the yuan's value on Wednesday, saying it is not the primary cause of a trade imbalance between the United States and China.
The remarks came hours after the US Senate approved a controversial bill to punish China for what it says is an undervalued yuan that is hurting the American jobs market.
But in comments published on its website, the People's Bank of China said the yuan is moving towards a balanced and reasonable level. It said that steady growth in China's $3.2 trillion foreign exchange reserves does not indicate that the yuan is undervalued.
The central bank also said any gains in the yuan would not improve the American jobs market or help the United States tackle its trade deficit.
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