PBOC Says Yuan Stable Against Currency Basket After Brexit

  • China’s central bank says fixing rate methods won’t change
  • Statement released Tuesday says market expecations are stable

China’s central bank said the yuan remains stable against a basket of currencies and that policy makers will stick to their current mechanism for determining its exchange rate.

While the yuan has weakened against the dollar after the U.K. vote to leave the European Union, market expectations for China’s currency remain stable, the People’s Bank of China said Tuesday in a statement on its Weibo social media account.

Moves in the yuan -- which are limited to 2 percent on either side of a daily central bank fixing -- have been smaller than that of others in the region after the Brexit vote. The Chinese currency weakened 1.2 percent in the two sessions through Monday, while the Australian dollar slumped 3.7 percent and Japan’s yen surged 4 percent.

Premier Li Keqiang said earlier Tuesday that China will make efforts to ensure the stability of the nation’s financial and capital markets after Brexit whipsawed global markets. Policy makers won’t allow drastic changes to capital markets, Li said at the World Economic Forum in Tianjin.

— With assistance by Jeff Kearns

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