LINE

Text:AAAPrint
Business

Depreciation pressures on China's yuan have eased: PBOC official

1
2017-07-19 09:34:30Global Times/Agencies Li Yan ECNS App Download

Depreciation pressures on the Chinese yuan have diminished as a result of more robust economic growth and rising foreign exchange reserves, a senior central bank adviser said in an interview with official State media published on Tuesday.

"Market confidence in the renminbi [yuan] is strengthening, while expectations of devaluation are getting ever weaker," Huang Yiping, a member of the People's Bank of China's (PBOC) monetary policy committee, told the Financial News.

China's foreign exchange reserves edged up in June for a fifth consecutive month as capital outflows eased in the face of tighter controls over moving funds out of the country and a pause in the U.S. dollar's rally.

China will also look to give its currency greater flexibility, expand its free floating range and reduce intervention in the foreign exchange markets, Huang said.

The central bank has long called for greater long-term flexibility in the yuan as China pushes ahead with its plan to further internationalize its currency.

Huang also said that while there were still downward risks to China's economic growth, the pressure had eased and there should be "no problem" for the country to aim for its target of around 6.5 percent full-year GDP growth.

China's economy expanded by a faster-than-expected 6.9 percent in the second quarter from a year earlier, giving policymakers room to tackle big economic challenges ahead of a key Party meeting later this year.

However, Huang added that there were still many risks in the financial markets, a key focus for the central government as it looks to stamp out risky behavior driven by corporations and lenders. He pointed to shadow banking, online financing and local government financing as the three main areas of uncertainty.

The PBOC set the yuan midpoint rate at 6.7611 per dollar on Tuesday, slightly weaker than the previous fix of 6.7562.

  

Related news

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2018 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.