People's Bank of China underscored on Monday that yuan remains largely stable against a basket of currencies despite the recent weakening of the domestic currency against the dollar, stressing that the foreign exchange market continues to operate steadily.
"As domestic policies to stabilize the economy and stabilize expectations have been successively introduced and implemented, year-on-year price growth (CPI) has bottomed out and turned positive, import and export data are better than expected...there is a solid foundation for the RMB exchange rate to remain basically stable at a reasonable and balanced level," the central bank said in the statement.
The central bank vowed that relevant authorities will continue to monitor the foreign exchange market and to "deal with it and resolutely prevent the risk of exchange rate overshoot."
