MNI BRIEF: PBOC To Keep Yuan Flexible, Monitor Overshoot Risk
MNI (BEIJING) - The People's Bank of China will continue to maintain the yuan exchange rate's flexibility while preventing any risk of excessive currency moves, said Liu Ye, an official within the international department, during a briefing on Friday.
The PBOC will strengthen the management of expectations to curb the formation of one-way speculation in the foreign exchange market, she said, noting the yuan is likely to exhibit a two-way fluctuation in the future due to factors, including divergent economic trends across countries, geopolitical changes, and swings in international financial markets. (See MNI: PBOC Restarts Counter-Cyclical Factor In Yuan Fix-Traders)
The yuan can remain stable supported by China's steady international balance of payments and the recent implementation of additional policies to boost the economy, she said.