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Sunday, March 5, 2017, 16:58

China to keep yuan stable in global monetary system

By Xinhua

China to keep yuan stable in global monetary system
In this Aug 11, 2015 photo, a worker counts Chinese currency Renminbi (RMB) at a bank in Linyi, east China's Shandong Province. (Zhang Chunlei / Xinhua)
BEIJING – China will continue market-oriented reform in the RMB exchange rate mechanism and maintain the currency's stable position in the global monetary system in 2017, according to a government work report available to the media Sunday ahead of the annual parliamentary session.

China's forex reserves are more than sufficient, either by internationally accepted traditional standards or the latest standards worked out by scholars

Pan Gongsheng, Deputy governor, People's Bank of China

The Chinese currency weakened around 6.8 percent against the US dollar last year as US economic recovery and expectations for more interest rate hikes prodded the dollar higher. But the RMB remained relatively stable against a basket of other currencies.

The government work report said the yuan remained generally stable at an "adaptive and equilibrium level" last year.

Analysts believed despite short-term volatility from a stronger dollar, the yuan will maintain overall stability and the chance for a sharp depreciation is slim, backed by stable Chinese economic growth, balanced fiscal condition and ample foreign exchange reserves.

China's forex reserves dipped to about US$2.998 trillion in January, down from about US$3.01 trillion in December 2016, representing the seventh consecutive monthly contraction that raised worries over the speed of declines.

Pan Gongsheng, deputy governor of China's central bank, dismissed such concerns on Saturday.

China to keep yuan stable in global monetary system
In this March 12, 2016 photo, Pan Gongsheng, deputy governor of the People's Bank of China, answers questions at a press conference on the financial reform and development on the sidelines of the fourth session of the 12th National People's Congress in Beijing, capital of China. (Li Xin / Xinhua)

"China's forex reserves are more than sufficient, either by internationally accepted traditional standards or the latest standards worked out by scholars," said Pan on the sidelines of the annual session of the Chinese People's Political Consultative Conference (CPPCC) National Committee.

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