China has vowed to closely monitor the yuan and pull tight on the reins if there are any big fluctuations in the under-pressure currency.
The People’s Bank of China said it will also be keeping a watching brief on dollar deposits after the yuan dropped to multi-month lows and breached the closely watched 7-per-dollar level, pressured by a sputtering economic recovery, low yields and the greenback’s rally.
Also on AF: Nikkei Surges to 33-Year High, Tech Stocks Drag on Hang Seng
The country’s central bank and forex regulator will jointly guide expectations, correct pro-cyclical and one-sided behaviour when necessary, and curb speculation, the central bank said on Friday.
China will strengthen self-discipline management of US dollar deposit businesses, improve currency hedging services for firms and reduce the cost of hedging for small and medium-sized firms, the bank added.
- Reuters with additional editing by Sean O’Meara
Read more:
Weak Yuan Dents Asia Currencies, Indian Rupee at Six-Week Low
India, Russia Halt Rupee Trade Talks, Moscow Prefers Yuan
Argentina to Ditch Dollar, Pay For Chinese Imports in Yuan
Yuan Overtakes Dollar For 1st Time in China Cross-Border Trade
