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16:21, 03-Jul-2018
China’s central bank chief extends policy tools to maintain RMB exchange rate
Updated
16:12, 06-Jul-2018
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China’s central bank chief on Tuesday responded to the fluctuations in the foreign exchange market during an interview, stressing that existing experience and ample policy tools can be used to maintain a reasonable RMB exchange rate.
Yi Gang, Governor of the People's Bank of China, said that there have been some fluctuations in the foreign exchange market recently. This is mainly due to factors such as stronger US dollar, external uncertainties and some procyclical behaviors.
At present, China's economic fundamentals are good as financial risks are generally controllable, the international balance of payments is stable, and cross-border capital flows are usually balanced. The economy enters a stage of high-quality development.
China implements a managed floating exchange rate system based on market supply and demand, regarding a basket of currencies. Practices over the years have testified to the effectiveness of the system, so it must be adhered to.
He said China will continue to implement a prudent and neutral monetary policy, deepen the reform of exchange rate marketization by using existing experience and policy tools.
The regulating role of macroeconomic prudential policies will also be fully exerted to maintain the RMB exchange rate at a reasonable and balanced level.