The People’s Bank of China (PBOC), in its first response to recent US actions and intensifying trade wars, said that US decisions to raise currency tensions on Monday would prevent the world from improving business and economic conditions.
"China has not and will not use the exchange rate as a tool to deal with trade disputes," the Bank of China said in a statement.
China's accusation of manipulation of the exchange rate by US, after the yuan's devaluation on Monday, has led to heightened tensions between the two world’s largest economies and the world's desperation to solve the two countries' trade war.
For the first time since 1994, the US Treasury has accused China of manipulating its currency.
The accusation comes after a statement from the International Monetary Fund (IMF) that the yuan was in line with China's economic fundamentals, but the US dollar was overvalued about 6% to 12%.