MNI BRIEF: PBOC To Ensure Yuan Stable, Ease For Economy: Xuan
MNI (LONDON) - The People’s Bank of China will take further measures to ensure a stable yuan exchange rate while strengthening counter-cyclical moves to support the economy, deputy-governor Xuan Changneng told a press conference on Tuesday.
A combination of measures will be adopted to boost the resilience of the foreign exchange market, stabilize market expectations, and enhance market management, he said, stressing the yuan will be supported by the solid economic foundation, the surplus in current account, balanced capital flows and abundant foreign exchange reserves, even though external environment faces increasing uncertainties. (See: MNI: PBOC Underpinning Yuan, But US Tariffs Key - Advisors)
The central bank will optimize the timing and intensity of policy measures based on domestic and international economic and financial conditions and the performance of financial markets in a bid to achieve annual economic goals, he noted.
A variety of monetary policy tools, including interest rates and reserve requirement ratios, will be utilized, said Xuan, noting the Bank will continue to reducing the funding costs of lenders and alleviate pressure on their net interest margins to strengthen the implementation of interest rate policies.