China will guard against yuan overshooting risks – PBOC publication – Reuters

BEIJING (Reuters) – People’s Bank of China (Central Bank) Governor Pan Gongsheng said China will firmly guard against the risk of an overshoot in the renminbi exchange rate, according to a report in the People’s Bank-affiliated newspaper Financial News on Wednesday. .

The comments come as the Chinese yuan has depreciated more than 5% so far this year, the most of any Asian currency, given the widening yield gap with other major economies and an uneven domestic economic recovery. It was issued amidst one of the worst-performing currencies.

Speaking at a financial forum in Beijing, Mr. Pan said China will prevent the market from building unilateral and self-reinforcing expectations for the Chinese yuan.

Despite the losses against the dollar, the yuan’s value against a basket of currencies has remained largely stable, while the yuan has appreciated slightly against other non-dollar currencies, Mr. Ban said. Stated.

The yuan’s trade-weighted CFETS Renminbi Basket Index (.CFSCNYI) stood at 98.49 on Wednesday, down 0.18% year-to-date, according to Reuters calculations based on official data.

Mr. Pan also reiterated that China can maintain prudent management of the foreign exchange market, and the renminbi will remain basically stable, rational and balanced.

Reported by Beijing Newsroom.Editing: Christian Schmollinger

Our standards: Thomson Reuters Trust Principles.

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