China stands firm in face of RMB depreciation against the US dollar 

Recent falls in the yuan exchange rate against the US dollar are based entirely on market forces, a senior official said on Tuesday after Premier Li Keqiang met with visiting US Treasury Secretary Jacob Lew.

Zhu Guangyao, vice-minister of finance, said China would not bow to United States pressure over the yuan's recent depreciation.

The Chinese currency has fallen by 2.9 percent against the US dollar since January, after appreciating by about 35 percent since 2005.

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Zhu said a "two-way movement" had been the consensus of China and the US, as it reflected market forces and could avoid speculation.

Lew told media before and during his trip to Beijing that he had noted the depreciation of the yuan in recent months and would press China to allow the market to play a bigger role in determining the value of the Chinese currency, indicating that China was manipulating the rate.

Zhu said Lew had exchanged views on economic issues, including the yuan exchange rate, with top officials in China, including Premier Li.

The renminbi-US dollar spot intraday trading band was widened from 1 percent to 2 percent in March, which experts said indicated the government was committed to greater renminbi internationalization and liberalization of the currency's exchange rate.

Li promised in an annual policy speech in March that the market would be allowed to play a decisive role in allocating credit and other resources.