Finance Minister Lou Jiwei says China has no plan to strike a deal similar to "Plaza Agreement" during the G20 meeting where the finance ministers and central bankers from the Group of Twenty major economies meet.

ANBOUND's research team is of the view that there are few reasons as to why China is not keen in the Plaza Accord.

Firstly, it is an extremely difficult task to turn this proposal into reality.

Secondly, China has learnt from the lessons drawn from the 1985 Plaza Accord where five countries joined force to intervene the currency markets.

Thirdly, since the postponement of the US interest rate hike, US dollar has weakened in the short term; therefore, the proposal of “Plaza Accord” is too aggressive.

Fourthly, the sovereignty over monetary policy is of utmost importance to China.