Arab Today, arab today china central bank capable of stabilizing yuan
Last Updated : GMT 01:21:23
Arab Today, arab today
Arab Today, arab today

China central bank capable of stabilizing yuan

Arab Today, arab today

Arab Today, arab today China central bank capable of stabilizing yuan

China central bank
Beijing - XINHUA

The recent fluctuation of the yuan exchange rate is "within control" and the central bank is "fully capable" of stabilizing the market if necessary, a central bank economist said on Wednesday.

"The central bank, if necessary, is fully capable of stabilizing the exchange rate through direct intervention in the foreign exchange market to avoid herd mentality resulting in irrational movements of the rate," economist Ma Jun with the People's Bank of China told reporters.

In addition to China's economic fundamentals that will underpin a stable currency, the country's substantial foreign exchange reserve, the world's largest at 3.7 trillion U.S. dollars, will make it better placed to stabilize the rate in the near term, Ma noted.

His comments came as the Chinese currency continued to fall on Wednesday after the central bank changed the exchange rate formation system to better reflect the market.

The central parity rate of renminbi, or yuan, weakened by 1,008 basis points, or 1.6 percent, to 6.3306 against the U.S. dollar, narrowing from Tuesday's 2 percent.

The central bank on Tuesday adjusted the exchange rate formation system so it now takes into consideration the closing rate of the inter-bank foreign exchange market on the previous day, as well as supply and demand in the market, and price movement of major currencies.

In response to doubts that the yuan rate would lead to competitive depreciation of other currencies in Asia, Ma said China "does not have the intention nor the need" for initiating such a move.

The economist said China's weak exports data in June, which slid 8.3 percent from a year ago, should not be over-interpreted as factors such as a high comparison base also played a role. As the world economy recovers, exports will gradually pick up in the latter half of the year.

That, along with increasing domestic demand on the back of pro-growth policies, will put China on track to deliver its 7-percent growth target.

"From this prospective, China does not have the need to start a currency war to gain advantage," Ma stressed, adding the yuan's current rate is "near equilibrium".

By making the exchange rate mechanism more market-oriented, some analysts have speculated that China is pushing for inclusion of the currency in the Special Drawing Right (SDR) basket.

The IMF on Wednesday welcomed the move and said a more market-oriented exchange rate would facilitate the SDR operation, should the RMB be included in the basket.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china central bank capable of stabilizing yuan Arab Today, arab today china central bank capable of stabilizing yuan

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday