The People’s Bank of China (PBoC) pledged to steady the yuan and step up support for the economy as doubts grow over a recovery, Bloomberg News reported.
Photo Insert: Declines in the yuan have persisted even as the central bank showed support by repeatedly setting the daily reference rate stronger than estimates.
The central bank will adopt “comprehensive measures and stabilize expectations” about the currency and “resolutely prevent risks of big fluctuations,” the PBOC said in its quarterly monetary policy report published late Friday.
The monetary authority also vowed to increase support for the economy as domestic demand is still “not strong.”
The currency slid to a seven-month low against the dollar on Friday, taking its declines this quarter to more than 5%. The currency is less than 1% away from a 15-year low seen in November when the continuation of the zero-COVID policy sent the nation’s financial markets spiraling.
Declines in the yuan have persisted even as the central bank showed support by repeatedly setting the daily reference rate stronger than estimates. Chinese regulators are also stepping up scrutiny of currency trading and cross-border capital flows, Bloomberg reported on Thursday.