China's central bank cited that a stronger yuan won't help curb the imbalance in trade between China and the U. S. after President Barack Obama repeatedly called for the Asian nation to move to a "market-oriented exchange rate."

Obama has been against making that designation in the two Treasury Department currency reports issued under his watch, favoring instead behind-the-scenes talks with Beijing.

The U. S. trade imbalance with China has cropped up as a political issue in Congress, with some lawmakers posting that China has kept the Yuan undervalued in a bid to boost its exports.

Nobel Prize-winning economist Paul Krugman said yesterday revealed that worldwide economic growth would register a 1.5 percentage points rise if China ends restraining the value of its currency and running trade surpluses.

A move by China to vary its currency is revealed to be a vital component required to rebalance the global economy, Obama said yesterday at the annual meeting of the U. S. Export-Import Bank.

The International Monetary Fund predicted in January posted that the world economy will grow 3.9 percent this year after a contraction of 0.8 percent last year. However, China's economy was augured to boost by 10 percent this year and 9.7 percent next.