China’s central bank promises stability in yuan exchange rate

Investing.com — The People’s Bank of China expressed confidence on Friday in its ability to maintain a “basically stable” yuan exchange rate at a “reasonable and balanced” level. The central bank communicated its stance to Reuters, emphasizing the robustness of the country’s economy and its reasonable current account surplus.

The bank further noted that China’s cross-border capital flows are balanced and the nation’s foreign exchange reserves are adequate. The central bank also pointed out that foreign exchange market participants have matured over time and regulatory departments have gained more experience in dealing with external shocks.

The People’s Bank of China’s statement came in response to a request for comment from Reuters. The central bank’s commitment to stability in the yuan exchange rate underscores its confidence in the solid foundations of China’s economy.

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