MNI POLICY: China Is Able To Keep Yuan Stable, says PBOC's Pan

     BEIJING (MNI) - China's central bank is confident and capable of

maintaining the stability of the yuan exchange rate at a balanced level,

according to Pan Gongsheng, vice governor of the People's Bank of China.

     In a statement on the PBOC website posted late on Sunday, Pan said that

foreign capital inflows have increased and forex reserves have risen steadily

since the beginning of this year.

     Pan, who is also the director of the State Administration of Foreign

Exchange told the PBOC-run newspaper Financial News that healthy macroeconomic

fundamentals, rapid credit growth and moderate monetary and financial conditions

would provide strong support for the forex market and the yuan.

     He said the PBOC would carry out the necessary counter-cyclical adjustments

and strengthen macro prudential management in response to market conditions, in

addition to combating illegal and irregular behaviour to safeguard stability on

the forex market.

     The PBOC would also continue to promote the dual opening of the financial

sector, deepen the reform of forex management, facilitate cross-border

investment and create a more friendly environment for global investors, Pan

said.  

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: MMQPB$,M$A$$$,M$Q$$$]