Comments by China's central bank's deputy governor, Liu Guoqiang
- Says China is able to keep yuan stable
- Says China has ample policy tools to cope with exchange rate fluctuations
- FX market condition is stable
- Economic fundamentals will support the yuan
- Says that uncertainties won't affect economic fundamentals
The Chinese central bank is trying to calm markets as the yuan continues to slip closer towards 7.00 per dollar. The onshore yuan closed at 6.9190 per dollar today, representing its weakest closing level since 30 November last year.
It is no coincidence that the PBOC is making such comments at this point in time. It shows that they stand ready to defend any further depreciation in fear that it will spark capital outflows away from Chinese markets.
