PBOC Deputy Governor: Will keep Yuan exchange rate basically stable
|People’s Bank of China’s (PBOC) Deputy Governor said on Thursday that they “will keep the Yuan exchange rate basically stable.”
Additional comments
Recent improvements in China's economy will provide support Yuan exchange rate.
Has confidence, conditions, ability to keep forex market stable.
Will prevent the formation of one-sided expectations on Yuan.
PBOC has set up credit market department.
Another PBOC official said that the central bank is “closely watching inflation trends,” add that they “will keep interest rates at appropriate levels but also prevent rates from becoming too low.”
“High real interest rates in some sectors may help control capacity and reduce inventories,” the official said.
Market reaction
At the time of writing, USD/CNY is holding flat at 7.2368, off the five-month high of 7.2405.
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