PBOC Seeks Stable Yuan: Deputy Governor

The People’s Bank of China aims to keep the yuan basically stable at a balanced level, and while the currency may deviate in the short term, market forces and policy factors will correct the deviation in the medium and long term, wrote Deputy Governor Sun Guofeng in the PBOC-run China Finance magazine. The central bank will use various monetary policy tools to smoothen short-term fluctuations in liquidity timely and appropriately, and guide financial institutions to vigorously boost credit supply, Sun said. It will increase targeted efforts, such as further increasing the relending quota to boost credit support for agriculture, rural areas and small and micro enterprises, wrote Sun.