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While the Chinese yuan is depreciating recently, the exchange rate hasn’t moved too away from the fundamentals, said Liu Guoqiang, deputy governor of the People’s Bank of China at a new briefing on Friday.
The yuan’s exchange may rise or fall, but won’t “deviate from the fundamentals excessively” and expectations in the foreign exchange market is stable, he said.
The yuan’s exchange rates won’t see one-way appreciation or depreciation and will maintain two-way fluctuations in a reasonable and balanced range, said Liu.
The PBOC has accumulated ample experience in dealing with external shocks and has ample policy tools to safeguard the stability in the foreign exchange market, he said.
The central bank will take comprehensive policy measures, stabilize market expectations and correct pro-cyclical and one-way market behaviors when necessary to prevent big market volatilities and keep the yuan at a reasonable and balanced level, he added.