Global site navigation

Local editions

China says to curb 'disruption' in currency market
Business and Economy

China says to curb 'disruption' in currency market

by  AFP 1 min read
The onshore yuan, whose trade is regulated by Beijing, last week briefly hit its lowest level against the US dollar in almost 16 years
The onshore yuan, whose trade is regulated by Beijing, last week briefly hit its lowest level against the US dollar in almost 16 years. Photo: Fred DUFOUR / AFP
Source: AFP

PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!

China's central bank said on Monday it would crack down on speculation that distorts the value of the yuan as the country's currency sees persistent volatility.

The onshore yuan, whose trade is regulated by Beijing, last week briefly hit its lowest level against the US dollar in almost 16 years.

The unit has come under pressure as the People's Bank of China lowers interest rates in a bid to kickstart the world's number two economy, at the same time as the Federal Reserve has tightened policy to temper inflation.

The PBoC said in a statement Monday that it had convened a "special meeting" to discuss "the recent situation in the foreign exchange market and issues around the exchange rate of the renminbi", the official name for the yuan.

"The financial management authorities have the capacity, confidence and resources to maintain the stability of the renminbi exchange rate and take action when necessary," the central bank said.

Read also

Erdogan pledges support for higher interest rates

"They are determined to correct unilateral and pro-cyclical behaviours, deal with disruption to the market order, and guard against the risk of overshooting the exchange rate," it said.

PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!

The bank added that "although the renminbi has recently somewhat depreciated against the US dollar, it remains basically stable against a basket of currencies".

The onshore yuan strengthened to 7.2766 against the dollar Monday from 7.3503 on Friday.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: