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Chinese yuan to be stable in 2017: central bank governor

Editor: Zhang Jianfeng 丨Xinhua

03-10-2017 13:42 BJT

Full coverage: 2017 NPC & CPPCC Sessions

BEIJING, March 10 (Xinhua) -- Chinese currency, the yuan, will "automatically" stabilize this year on the back of a firming economy and rising confidence in the country's growth prospects, central bank governor Zhou Xiaochuan said Friday.

Zhou Xiaochuan, governor of the People

Zhou Xiaochuan, governor of the People's Bank of China (PBC), answers questions at a press conference on financial reform and development for the fifth session of the 12th NPC in Beijing, capital of China, March 10, 2017. (Xinhua/Li Xin)

"There will not be big changes in central bank policies in 2017, though the implementation and supervision will be more meticulous and precise," Zhou said at a press conference on the sidelines of the annual parliamentary session.

He also noted unpredicability in the foreign exchange market due to uncertainties both at home and abroad, saying fluctuations will be normal.

Zhou attributed yuan's exchange rate fluctuations in the latter half of last year to outbound investment and forex spending, which he said were bigger than past years.

Surge in U.S. dollar value following "unexpected" changes in the wake of U.S. presidential election was also partly to blame, he added.

The Chinese currency weakened more than 6 percent against the U.S. dollar last year, but had remained relatively stable against a basket of other currencies.

In response to a question on the interest rate differential between China and the United States, Zhou said the rate changes will not necessarily lead to notable and persistent capital flows over the medium and long term, although there might be speculative activities in the short term.

In the government work report delivered by Premier Li Keqiang, China pledged to continue market-oriented reform in the RMB exchange rate mechanism and maintain the currency's stable position in the global monetary system in 2017.

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