China will keep the yuan exchange rate ‘basically stable’ – central bank governor

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Published: Mar 3, 2023, 03:21 GMT+00:00

BEIJING (Reuters) - China will keep the yuan exchange rate "basically stable" this year, Yi Gang, governor of the central bank, said at a press conference in Beijing on Friday, adding that volatility will be market-driven.

Governor of People's Bank of China (PBOC) Yi Gang attends a news conference on China's economic development ahead of the 70th anniversary of its founding, in Beijing

BEIJING (Reuters) – China will keep the yuan exchange rate “basically stable” this year, Yi Gang, governor of the central bank, said at a press conference in Beijing on Friday, adding that volatility will be market-driven.

Yi also said that using the reserve requirement ratio (RRR) to release long-term liquidity will still be an effective tool to support the economy, and that China’s real interest rate is currently at an appropriate level.

(This story has been corrected to say ‘reserve requirement ratio’, not ‘reverse repo rate’, in paragraph 2)

(Reporting by Kevin Yao and Joe Cash; Editing by Edmund Klamann)

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