China’s healthy economic fundamentals and ample foreign currency reserves will help keep the yuan 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.
Pan said that recent yuan falls reflected market supply and demand as well as global market volatility.
He reiterated that China would not engage in competitive currency devaluation to cope with trade frictions arising from the ongoing tariff war with the United States.
Pan added that authorities would actively deal with external risks caused by trade frictions and improve policy transmission mechanism by the bank to boost lending for small and private firms.
The bank has provided 10 billion yuan in initial funding for a scheme to promote private firms’ bond issuance. (Reuters/NAN)