China's digital fiat currency is 'nearly ready' for launch: PBOC official

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The IMF report showed that China's current account surplus fell by around 1 percentage point to 0.4 percent of gross domestic product in 2018 and it is projected to remain contained at 0.5 percent of GDP this year. From 2005 to 2014, the average annual yield of China's foreign exchange reserves was 3.68 percent.

"Critically, we're not seeing any movement so far from commerce or the White House in easing the export restrictions on Huawei", Goujon said.

President Donald Trump has said he won't devalue the dollar amid an escalating trade war with China that has unleashed tit-for-tat actions on trade and currency policy.

The countries have imposed tariffs on $360 billion in two-way trade, and with the new round announced by Trump all Chinese goods would be subject to punishing duties.

But the International Monetary Fund in its policy prescriptions for Beijing should economic conditions deteriorate and cause the yuan to depreciate rapidly, said China might need to use "FX intervention to counter disorderly market conditions".

Former US Treasury Secretary Lawrence Summers criticized the US administration for naming China a "currency manipulator", saying such a move has damaged the US credibility.

The situation "requires some kind of response", Daniel said on a conference call. However, dollar-denominated assets still hold the dominant position in the worldwide financial market, and the USA dollar remains the main currency in global trade and investment.

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Trump comment comes a day after USA hit China with new import duties Thursday on more than $4 billion in imported wooden cabinets and vanities, after finding manufacturers there benefit from unfair subsidies.

China's central bank then intervened to stabilize the exchange rate to prevent it from falling further.

Trump suggested on Friday that planned in-person negotiations with China in Washington in September could be scrapped.

"China's announcement this week that it is halting purchases of USA agricultural products in response to the tariff threat led to a reported indefinite freeze to the Commerce Department's consideration of granting licenses for US tech companies to resume some business with Huawei", analysts with Raymond James said in a research note.

Based on the press releases of IMF, China's economic growth stabilized in early 2019 and is expected to moderate to 6.2 percent and 6.0 percent in 2019 and 2020, respectively.

Li Kuiwen, a spokesman for the General Administration of Customs' Department of Statistics, said China has not only increased its market share with major economies such as the European Union this year, but its trade volume with emerging markets has also notably surged.

At the same meeting, China UnionPay Chairman Shaofu Jun said that the goals of China's CBDC would be hard to achieve.

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