BEIJING (Reuters) – China will resolutely curb large fluctuations in the exchange rate and study the strengthening of self-regulation of dollar deposits, the central bank said on Friday.
The comment comes after the yuan dropped to multi-month lows and breached the closely watched 7-per-dollar level, pressured by a sputtering economic recovery, low yields and the U.S. dollar’s broad rally.
The country’s central bank and forex regulator will jointly guide expectations, correct pro-cyclical and one-sided behaviour when necessary, and curb speculation, the People’s Bank of China said in a statement.
China will strengthen self-discipline management of U.S. dollar deposit businesses, improve currency hedging services for firms and reduce the cost of hedging for small and medium-sized firms, the bank said.
(Reporting by Ella Cao, Liz Lee and Kevin Yao; editing by Toby Chopra)