China’s commerce ministry spokesman said people should not hype the renminbi’s recent depreciation against the US dollar, the official Xinhua News Agency reported Tuesday. “We should look at this with a more rational attitude rather than reading too much into it,” Shen Danyang was quoted as saying at a press conference, in response to a question about whether the yuan’s recent depreciation was a result of government intervention. The Chinese currency weakened 0.4 percent against the US dollar in the first two months this year, a period in which the country also saw a shrinking trade surplus, the report said. “People should put the yuan’s recent depreciation in the wider context of China’s reform of its currency’s exchange rate formation mechanism,” Shen said. The People‘s Bank of China widened the yuan’s daily trading band from 1 percent to 2 percent on Monday, the report said.
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