PBOC: China's Financial Risks Are Controllable, Despite Yuan Fall
Since the Chinese yuan started weakening in mid-June, central bank of China aims to stabilize the financial situation. The yuan is the worst performing currency in Asia over the past month, losing more than 4% against the US dollar as the domestic economy slows and the nation slides closer to a trade war with the US.
It is reported, that China will keep the national currency stable at an equilibrium level, and the central bank will maintain a prudent, neutral policy stance. Yi Gang (the People’s Bank of China Governor) stated, that the central bank will "keep the yuan exchange rate basically stable at reasonable and balanced level.".
China’s financial risks are controllable, Yi Gang stated, adding that "China has a managed floating currency exchange rate mechanism which is based on market supply and demand and with reference to the basket of currencies."