Zhou Xiaochuan: All Is Well, Yuan Stable

FT: China central bank governor Zhou Xiaochuan plays down forex fears
China’s central bank governor played down concerns over the country’s falling foreign reserves and said he saw no basis for continuing depreciation in the renminbi — comments that could calm mainland markets when they reopen on Monday after a week-long hiatus that saw upheaval in global markets.

Bloomberg: PBOC's Zhou Breaks His Long Silence
The nation’s balance of payments is good, capital outflows are normal and the exchange rate is basically stable against a basket of currencies, Zhou said in an interview published Saturday in Caixin magazine. That’s an escalation in verbal support after such comments have been left in recent months to deputies and the central bank research department’s chief economist.

Zhou dismissed speculation that China plans to tighten capital controls and said there’s no need to worry about a short-term decline in foreign-exchange reserves. The country has ample holdings for payments and to defend stability, he said.

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