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Market expectations stable for yuan exchange rate

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IANS Beijing
Last Updated : Mar 04 2017 | 3:22 PM IST

China's currency, the yuan, is experiencing two-way fluctuations, and market expectations are stable for its future trend, central bank deputy governor Pan Gongsheng said on Saturday.

Pan made the remarks in Beijing before attending a panel discussion during the annual session of the Chinese People's Political Consultative Conference National Committee, which opened on Friday, Xinhua news agency reported.

Speaking of market concerns over China's waning foreign exchange reserves, which are now below the closely watched $3 trillion mark, Pan said that such a mark is "meaningless" as the value of forex reserve is a "continuous variable".

The country's forex reserves dipped to about $2.998 trillion in January, down from about $3.01 trillion in December 2016, representing the seventh consecutive monthly contraction, the State Administration of Foreign Exchange data showed.

"China's forex reserves are more than sufficient, either by internationally accepted traditional standards or the latest standards worked out by scholars," said Pan.

Yi Gang, also a central bank deputy governor, said on the same occasion that an interest-rate increase is not necessary for China for the time being.

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China has set the tone of its 2017 monetary policy as prudent and neutral, keeping appropriate liquidity but also avoiding excessive liquidity injections.

--IANS

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First Published: Mar 04 2017 | 3:12 PM IST

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