Zhou Xiaochuan: This year, the yuan is expected to remain "fairly stable"

It is impossible to predict with certainty what will affect events surrounding the " people's currency." The government's objective is to maintain growth at around 6.5%. The foreign exchange reserves decrease by 4 thousand to $ 3 trillion US dollars.


Beijing (AsiaNews) - Zhou Xiaochuan, president of the People's Bank of China, said Friday that this year the yuan is expected to remain "fairly stable". In 2016, US President Donald J. Trump had accused China of having voluntarily  under written the "people's currency", which last year lost 7% of its value.

"In these circumstances - said Zhou in Beijing - we believe that this year the exchange rate of the yuan will remain fairly stable. But in any case, no one can predict exactly which events and uncertainties may affect the yuan. The currency market is always very sensitive and follows the overall trend of the global market ".

Trump has repeatedly accused Beijing of being "currency manipulator" and having weakened its currency to boost its exports. He also threatened to impose onerous tariffs on Chinese products.

The central bank tightened its monetary policy by raising short-term interest rates for the first time since 2013. The decision is motivated by a ' "explosion" of last year in loans in support of growth, resulting in worrying risks financial.

Zhou also spoke about the dramatic decline in foreign exchange reserves last year, which fell by 4 thousand to 3 thousand billion US dollars, an amount of currency that according to Zhou "was not that necessary for the country."