People’s Bank of China comments crossing

Headlines via Reuters :

  • Says it is normal to see changes in forex reserves
  • Will keep forex reserves at a reasonable, appropriate level
  • Recent changes to reporting method for forex purchases and sales are intended to avoid misreading of data by market
  • Supply and demand will play main role in determining yuan exchange rate in medium and long term
  • Exchange rate will reflect economic fundamentals
  • To keep renminbi basically stable against a basket of currencies
  • Will look for opportunities at the appropriate time to push forward yuan exchange rate reform
  • Pace of reform may speed up or slow down depending on availability of appropriate time window


  • January loan surge due to seasonal factors
  • Monetary policy is prudent with a slight easing bias