Yi Gang, China's central bank governor. (Photo/China News Service)
(ECNS) - China's central bank governor Yi Gang said that the bank is paying close attention to recent fluctuations on the foreign exchange market.
The governor said the fluctuations are mainly due to a stronger U.S. dollar and external uncertainties, with some pro-cyclical volatilities, according to a statement on the website of People's Bank of China.
Yi also said China still has sound economic fundamentals, controllable financial risks, and accelerated economic transformation and upgrading.
China’s economy has entered a stage of high-quality development, with stable international payment and a general balance in cross-border capital flow, said Yi.
He also said that practices over the years have proved China’s market-based, managed floating exchange rate system is effective and needs to continue.
The central bank will continue to implement a prudent and neutral monetary policy while deepening reform of exchange rate marketization, using existing experience and sufficient policy tools to keep the RMB exchange rate broadly stable, it was added.