China's Central Bank Says No Basis for Continued Yuan Decline
- No need for concern about short-term drop in foreign reserves
- Zhou dismisses speculation China will tighten capital controls
No Basis for Lasting Yuan Fall: PBOC's Zhou
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China’s central bank governor said there’s no basis for continued depreciation of the yuan because the balance of payments is good, capital outflows are normal and the exchange rate is basically stable against a basket of currencies, according to an interview published Saturday in Caixin magazine.
Zhou Xiaochuan dismissed speculation that China plans to tighten capital controls and said there’s no need to worry about a short-term decline in foreign-exchange reserves, adding that the country has ample holdings for payments and to defend stability.