China to continue market-based currency reform, promote yuan trading in US: Lew

US Treasury Secretary Jack Lew (second from left) at an entrepreneur breakfast meeting at the US-China strategic and economic dialogues in Beijing, on June 7, 2016.
US Treasury Secretary Jack Lew (second from left) at an entrepreneur breakfast meeting at the US-China strategic and economic dialogues in Beijing, on June 7, 2016.PHOTO: REUTERS

BEIJING (REURTERS) - China committed during bilateral talks to continue "market-oriented exchange rate reform that allows for two-way flexibility" of its yuan currency, US Treasury Secretary Jack Lew said on Tuesday (June 7).

The US and Chinese have agreed on a policy framework for the private sector to enhance yuan trading and clearing in the US, Mr Lew said at the end of high-level talk between US and Chinese officials in Beijing.

Mr Lew also said that China officials stressed there is no basis for sustained depreciation of the yuan, which is a major worry hanging over jittery global financial markets.

China also will include the United States in a program allowing foreign institutional investors to invest offshore yuan in China's domestic securities markets, a central bank vice-governor said on Tuesday.

On China's industrial capacity glut, Mr Lew said the two countries were not able to come to any agreement on global aluminium excess capacity.

The US welcomes commitments from Chinese officials to "progressively reduce" excess steel production capacity, Lew said.

Chinese officials also committed to improve economic data and transparency, Mr Lew said.