BUSINESS China able to ensure stability of yuan: central bank

BUSINESS

China able to ensure stability of yuan: central bank

Xinhua

20:26, October 26, 2018

RMB.jpg

(File photo: VCG)

BEIJING, Oct. 26 (Xinhua) -- China's central bank official said Friday that the country has the foundation, capability and confidence to keep the yuan's exchange rate basically stable at a reasonable and balanced level.

Pan Gongsheng, deputy head of the People's Bank of China, attributed recent fluctuations of the yuan's exchange rate to factors including the US Federal Reserve interest rate hike, a stronger US dollar, international financial market volatility and trade frictions.

The yuan has remained relatively stable compared with other emerging market currencies and China will adopt macro-prudential measures to stabilize market expectations, Pan told a press conference.

The country's sound economic fundamentals, stable macro leverage ratio, controllable financial risks, balanced international payment and sufficient foreign exchange reserves will keep the yuan basically stable, he said.

Pan reiterated that China will not engage in competitive currency devaluation or use the exchange rate of the yuan as a tool to address external disturbances such as trade frictions.

He said the China-US trade frictions had a controllable impact on China's forex market and cross-border capital flows.

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