China to use ex rate for economic structure

The People's Bank of China said in its monetary policy report released Wednesday 9 August that it will use the exchange rate to adjust the nation's economic structure.

In its second-quarter monetary policy report, the PBOC said that a "basket of policies" are needed to address the problem, arguing once again against a sole focus on exchange rate adjustment.

"The most fundamental way to solve large surpluses in international payments is to expand consumption and cut the savings rate. The exchang