More from deputy governor of the PBOC: Will prevent sharp fluctuations in the yuan

Jawboning from the People’s Bank of China on the yuan.

Liu Guoqiang, deputy
governor of the
People’s Bank of China:

  • It’s not good to see yuan exchange rate too high or too low
  • Will prevent sharp
    fluctuations in yuan
  • Expects china’s
    economy to improve
  • China’s cross-border
    capital flows are basically balanced
  • Moves in yuan
    exchange rate will not be one-way

And, more, these from Zou Lan, head of the
monetary policy
department at the bank:

  • There is ample room, various polices tools to cope with challenges
  • Will use policy
    tools such as reserve requirement ratio and medium-term lending
    facility
  • Will innovate new
    policy tools if needed

Earlier comments from Liu are here:

This article was written by Eamonn Sheridan at www.forexlive.com. Source