China's Commitment to a Stable Yuan: Central Bank Insights

China aims to maintain the yuan's exchange rate at stable and balanced levels, relying on solid economic fundamentals and balanced international payments. The central bank emphasizes market-driven currency formation while guarding against overshooting risks.

China is set on maintaining a stable yuan exchange rate, according to a central bank-backed publication on Tuesday. The nation's robust economic fundamentals and balanced international payments are seen as key supporters of this goal.

The official Financial News has noted that the central bank intends to continue allowing the market to play a decisive role in currency formation. At the same time, it will ensure currency flexibility and guide expectations to manage potential risks of currency overshooting.

This commitment highlights China's focus on sustaining economic stability and confidence in their monetary policy, assuring global markets of their strategic approach in currency management.

(With inputs from agencies.)