Thursday 8 December 2016

No basis for more yuan devaluation - China

Published 15/02/2016 | 02:30

Zhou Xiaochuan, governor of the People's Bank of China (PBOC). Photo: Bloomberg
Zhou Xiaochuan, governor of the People's Bank of China (PBOC). Photo: Bloomberg

China's central bank has stepped up efforts to restore stability to the nation's currency and economy, with Governor Zhou Xiaochuan breaking his long silence to say there's no basis for continued yuan depreciation.

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The nation's balance of payments is good, capital outflows are normal and the exchange rate is basically stable against a basket of currencies, Zhou said.

That's an escalation in verbal support after such comments have been left in recent months to deputies and the central bank research department's chief economist.

Zhou dismissed speculation that China plans to tighten capital controls and said there's no need to worry about a short-term decline in foreign-exchange reserves.

The country has ample holdings for payments and to defend stability, he said. The comments come as Chinese financial markets prepare to reopen today after the Lunar New Year.

Irish Independent

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