China Vows to Prevent Yuan’s Exchange Rate From ‘Overshooting’

China vowed to prevent the yuan’s exchange rate from overshooting, sending yet another clear signal of its intention to slow the currency’s appreciation.

The People’s Bank of China said while it will maintain the exchange rate’s flexibility, it will strengthen efforts to guide expectations and guard against “overshooting risks” for the currency, according to its 2025 financial stability report released on Friday. The central bank also reiterated a pledge to keep the yuan basically stable on a reasonable equilibrium.