PBOC official vows to fend off RMB's sharp ups, downs

BEIJING, July 14 (Xinhua) -- China's cental bank will move to correct pro-cyclical and one-sided market behaviors when necessary to prevent sharp ups and downs of the Chinese currency renminbi (RMB), or the yuan, an official said Friday.

Liu Guoqiang, deputy governor of the People's Bank of China (PBOC), told a press conference that the central bank has the confidence and capability to ensure a stable foreign exchange market.

Commenting on the yuan's recent fluctuations, Liu said its exchange rate is in general determined by the market, and the currency could both appreciate or depreciate depending on various factors amid an open Chinese economy.

The yuan's exchange rate against the U.S. dollar recently weakened to below 7, the fourth time since 2019, and there have been apparent improvements over the past days, Liu said.

Liu stressed that although the yuan depreciated, it has not deviated from the fundamental. He cited three supportive factors for the yuan's stability: a sound economic fundamental, a moderate current account surplus, and sufficient foreign exchange reserves.

There will not be a one-sided market for the yuan and the currency will maintain two-way fluctuations and dynamic equilibrium, he said.