China to keep yuan exchange rate basically stable: central bank

BEIJING, Nov. 22 (Xinhua) -- China will keep the exchange rate of the yuan basically stable at an adaptive and balanced level, a central bank official said Friday.

The People's Bank of China (PBOC) will prevent the building of one-sided collective expectations and self-fulfilling in the foreign exchange market, and forestall exchange rate overshooting risks, PBOC official Liu Ye told a press conference.

Liu said the stability of the yuan exchange rate would be supported by multiple favorable factors, including the equilibrium in the balance of payments, foreign exchange market resilience, the government's supportive macroeconomic policies that have improved market expectations, and the firming up of the country's economic recovery.

She expected the yuan exchange rate to show two-way fluctuations, affected by factors such as the diverging development trends among economies, geopolitical uncertainties, and volatility in the global financial markets.

The PBOC has unveiled a series of policies to boost the country's economic growth, which are taking effect. It will continue to work with other departments to enhance support for the stable development of foreign trade, Liu said.