China will not use exchange rate to facilitate exports: central bank

China will "absolutely" not use the exchange rate as a tool to facilitate exports or cope with its trade disputes with the US, and will adhere to the market-determined exchange rate system, said Yi Gang, governor of People's Bank of China, the central bank, on Sunday.

China has made substantial progress in exchange rate liberalization in recent years, Yi said at a news conference on the sidelines of the second session of the 13th National People's Congress on Sunday.

"The market and enterprises have formed an increasingly clearer perception that the exchange rate of the RMB is determined by the market mechanism," he said.

Yi stressed China will "absolutely" not resort to currency depreciation to tackle trade frictions and facilitate exports, saying that the RMB remained relatively stable last year.

In 2018 the exchange rate of the RMB against the US dollar fluctuated less drastically as the euro or British pound, Yi said.

As China enriches trading tools of the exchange market, RMB market expectation will become more stable, Yi said. "As a currency with market-determined exchange rates, the RMB will become a very attractive and freely usable currency this year."

Sino-US trade talks have reached consensus on "many key and important aspects" of the currency exchange rate issue, said Yi.

During the latest talks – the seventh round since February last year – the two sides discussed issues related to exchange rates, Yi said.

Among these issues were respecting both sides' autonomy over monetary policies, adhering to the market-determined exchange rate system, avoiding depreciating currencies for trade advantages, and disclosing foreign exchange-related information in line with standards set by the IMF, Yi said.