MNI BRIEF: PBOC To Increase Forex Market Resilience

The People’s Bank of China said it will enhance the resilience of the foreign exchange market and correct any pro-cyclical market behavior, according to the central bank’s Q4 monetary policy report released Thursday.

The PBOC will guard against the risk of exchange rate overshooting and stabilise the yuan at a reasonable and balanced level, the report said, adding that it will adopt comprehensive measures and stabilise expectations. (See MNI: PBOC To Ensure Yuan Stability In Trump’s Second Term)

It will also deepen market-oriented reform of exchange rate as well as monitor and analyse cross-border capital flows, the report noted.