China's Fan says FX can't solve imbalances alone

People's Bank of China adviser Fan Gang said Saturday 21 April that China's external imbalances will not be solved by varying the yuan exchange rate alone.

"If you adjust the (yuan) exchange rate, but the other side (the U.S.) continues to record a deficit, deficit, deficit," the imbalances won't be solved, said Fan, during the Boao Forum for Asia.

Fan said China's rising trade surplus comes from higher savings, especially among state-owned companies that are increasing in efficiency and

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