Yuan to move both ways, more‘adjustments’unlikely

Editor: 管理员      Date:2015-08-17      Hit:5052
%3CP%3E%3CFONT%20face%3DVerdana%3EChina%27s%20move%20to%20weaken%20the%20yuan%20last%20week%20could%20head%20off%20further%20similar%20%22adjustments%22%2C%20and%20the%20yuan%20is%20likely%20to%20move%20in%20both%20directions%20as%20the%20economy%20stabilizes%2C%20Ma%20Jun%2C%20chief%20economist%20at%20the%20central%20bank%20said%20on%20Sunday.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20People%27s%20Bank%20of%20China%20%28PBOC%29%20shocked%20global%20markets%20by%20devaluing%20the%20yuan%20by%20nearly%202%20percent%20on%20Aug%2011.%20The%20PBOC%20called%20it%20a%20free-market%20reform%20but%20some%20saw%20it%20as%20the%20start%20of%20a%20long-term%20yuan%20depreciation%20to%20spur%20exports.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20yuan%27s%20drop%20last%20week%20and%20its%20increased%20flexibility%20could%20help%20%22sharply%20reduce%20the%20possibility%22%20of%20similar%20adjustments%20in%20future%2C%20Ma%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20the%20near%20term%2C%20it%20is%20more%20likely%20there%20will%20be%20%22two%20way%20volatility%2C%22%20or%20appreciation%20and%20depreciation%20of%20the%20yuan%2C%20Ma%20said%20in%20a%20question-and-answer%20statement%20sent%20by%20email.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20central%20bank%20would%20move%20only%20in%20%22exceptional%20circumstances%22%20to%20iron%20out%20%22excessive%20volatility%22%20in%20the%20exchange%20rate%2C%20Ma%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMa%20played%20down%20market%20fears%20that%20a%20%22currency%20war%22%20could%20be%20triggered%20by%20China%27s%20devaluation%2C%20which%20dragged%20some%20other%20Asian%20currencies%20to%20multi-year%20lows.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22China%20has%20no%20intention%20or%20need%20to%20participate%20in%20a%20%27currency%20war%27%2C%22%20Ma%20said%20in%20the%20statement.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22There%20is%20no%20need%20to%20worry%22%20that%20the%20central%20bank%20will%20continue%20to%20intervene%20in%20the%20market%20to%20support%20the%20yuan%20as%20China%27s%20economy%20stabilizes%2C%20Ma%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22In%20the%20future%2C%20even%20if%20the%20central%20bank%20needed%20to%20intervene%20in%20the%20market%2C%20it%20may%20be%20in%20either%20direction%2C%22%20he%20added.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMa%20also%20said%20that%20he%20expected%20the%20economy%20to%20grow%20around%207%20percent%20this%20year%20-%20in%20line%20with%20the%20government%27s%20target.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28China.org.cn%29%3C/FONT%3E%3C/P%3E