China's central bank to strengthen guidance on market expectations

A senior official from the central bank's monetary policy department told a newspaper backed by the central bank that the country’s macroeconomic fundamentals stay sound, with the balance of payments expected to stay broadly balanced on its own, offering a solid foundation for medium and long-term currency stability.

The official said the central bank will continue to let the market play a decisive role in the formation of the yuan's exchange rate and maintain its flexibility.

It will "strengthen expectation management and guard against the risk of exchange rate overshooting" to keep the yuan's value generally stable at a reasonable and balanced level.

ALCHEMPro News Desk (DS)