China able to keep yuan stable, cope with external risks: PBOC vice governor

BEIJING (Reuters) – China’s healthy economic fundamentals and ample foreign currency reserves will help keep the yuan basically stable, Pan Gongsheng, a vice governor at the People’s Bank of China, said on Friday.

The central bank will adopt macro-prudential measures to stabilize market expectations, Pan told a briefing, warning against speculators who seek to short the yuan.

Recent yuan falls reflected market supply and demand, and global market volatility, Pan said, reiterating that China will not engage in competitive currency devaluation to cope with trade frictions arising from the ongoing tariff war with the United States.

The authorities will actively deal with external risks caused by trade frictions, he added.

Pan went on to say the central bank will improve policy transmission mechanism to boost lending for small and private firms. The central bank has provided 10 bln yuan in initial funding for a scheme to promote private firms’ bond issuance, he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.