Mubasher: The People's Bank of China (PBOC) has stated that it would not use the yuan exchange rate in the so-called trade war with the US.

The PBOC added that it would rather strive for the stabilisation of its currency to mitigate the uncertainty engulfing the global markets.

“We will take further effective measures to carry out counter-cyclical adjustments when necessary and regulate macro-prudential policies to maintain stability in the yuan exchange rate levels,” the world second biggest economy’s central bank said.

The bank’s current statement may be a response to major concerns over a deliberate devaluation of the yuan to offset the impact of the new US tariffs on the Chinese exports.

Standing at $0.15, the CNY has declined about 4% in the last three month.