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MNI BRIEF:PBOC To Ensure Stable FX, Yuan Close To Fundamentals

MNI (Singapore)
(MNI)Beijing

The People’s Bank of China will ensure a stable exchange rate but the yuan has not significantly deviated from fundamentals, a leading PBOC official told reporters on Friday, adding that the Chinese currency would benefit as the Federal Reserve concludes its hiking cycle and U.S.-China yield spreads return to normal.

The PBOC has plenty of policy ammunition to respond to any unexpected changes in the economy, said Zou Lan, head of the PBOC’s monetary policy department, adding that new loans had clearly rebounded in September from previous months as real estate development and mortgage lending increased at a fast pace. The Bank will further push for the implementation of previous policies, he said. (See MNI INTERVIEW: PBOC Will Act On Capital Outflow - MPC Member)

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