China’s central bank official Pan Gongsheng said on July 3 that the flexibility of the yuan’s exchange rate has increased and it has performed well among emerging market currencies since the beginning of this year.
“Over the years, China has accumulated fruitful experience and ample policy tools. We are confident that we will maintain the RMB (yuan) exchange rate at a reasonable and balanced level,” said Pan Gongsheng, the deputy governor of the People’s Bank of China and director of the State Administration of Foreign Exchange.
The fundamentals of economic growth are good as the quality and efficiency of economic growth are constantly improving, and the resilience of economic growth is enhanced. Also, China’s balance of payments is generally balanced and foreign exchange reserves are sufficient, Pan added.
The central parity rate of the yuan on July 3 slipped 340 basis points to 6.6497 against the US dollar, according to the China Foreign Exchange Trade System.