China's central bank governor Zhou Xiaochuan said on Friday there is still room and tool for monetary policy and China will continue to implement prudent macroeconomic policies.

Zhou made the remarks at a press briefing on the sideline of G20 meeting of central bankers and finance ministers in Shanghai on Feb. 26, 2016.

The Chinese central bank governor said there is no basis for continued depreciation of the RMB. China still has large current account surplus and low inflation.

China's economy has entered a new normal. With the economic restructuring pressing ahead and quality of growth improved, the fundamentals of Chinese economy remain strong, added Zhou. 

The global economic recovery remains slow and imbalanced. The G20 will discuss the world economy and policy options, and will strengthen coordination to promote global recovery.

No need to worry about China's forex reserves decrease

There is no need to feel worried about the scale of China's foreign exchange reserves, Zhou Xiaochuan also said at the press briefing.  　

Zhou explained that foreign exchange reserves is like a reservoir. There is inflow and outflow. In most cases, the capital flows is normal. 

In terms of the decline of China's foreign exchange reserves last year, Zhou expressed understanding of the concerns of outside world. Although there are many views about the proper scale of China's foreign reserves, there is no need to feel worried about it, Zhou said. 

China's foreign reserves decreased more than 500 billion U.S. dollars in 2015. If the trend continues, it will exacerbate the devaluation expectations of the RMB. Therefore, China should maintain at least 3 trillion U.S. dollars of foreign exchange reserves, Li Daokui, an economics professor at Tsinghua University said earlier.