Chinese central bank says it will keep yuan stable to help exporters By Reuters


© Reuters. The headquarters of the People’s Bank of China (PBOC), the central bank, is pictured in Beijing, China on September 28, 2018. REUTERS / Jason Lee / Files

BEIJING (Reuters) – China will continue to keep its currency stable and timely adjust its policy tools to help struggling exporters, a central bank vice governor said on Thursday.

The country’s cabinet on Wednesday signaled the possibility of timely cuts in the amount of liquidity banks must hold as reserves to support struggling small businesses that have been squeezed by soaring commodity prices.

“We have noticed that some companies may have this problem, so we will continue to keep the exchange rate stable and make timely adjustments to policy tools,” Vice Governor Fan Yifei said at a press conference when asked. on the problem of exporters. deficit on all their orders.

The yuan weakened on Thursday as the dollar traded near its three-month highs and after the Chinese government launched the possibility of reducing bank reserve requirements to support economic growth.

The government will continue to lower real lending rates and lower the costs of financing small businesses through targeted monetary policy tools, Fan added.

Fan also weighed on cryptocurrencies, voicing the Chinese regulator’s concerns over so-called “stablecoins,” which he said were seen as speculative tools threatening financial and social stability.

As the regulator cracks down on the crypto market, Fan said the People’s Bank of China’s own digital currency will be tested during the Beijing Winter Olympics.

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