PBOC Official: There is solid foundation to keep Yuan exchange rate basically stable

Dhwani Mehta FXStreet

Speaking at a press conference following the People’s Bank of China’s (PBOC) interest rate decision on Wednesday, the central bank official commented on the Yuan exchange rate value.

Key quotes

Will pay more attention to changes in the Yuan exchange rate against a basket of currencies.

Will resolutely correct one-sided pro-cyclical behavior for yuan exchange.

Will resolutely curb disruptions to market order, resolutely guard against exchange rate overshooting risks.

China's monetary policy still has ample policy room to respond to unexpected challenges and changes.

Will continue to implement prudent monetary policy, step up counter-cyclical adjustments.

Will keep liquidity reasonably ample, enhance stabliity of credit growth.

Market reaction

At the time of writing, USD/CNY is testing intraday highs near 7.2970, erasing early losses to trade neutral on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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