PBOC Vows to Prevent Excessive Currency Movements as Yuan Slides

(Bloomberg) — China’s central bank pledged to avoid excessive movements in the yuan as the currency slides toward its weakest level since 2007.

The People’s Bank of China (PBOC) also said it will “step up macroeconomic policy adjustment” while largely reaffirming its policy stance, according to its quarterly monetary policy report published Thursday.

The central bank said it will prevent “over-adjustment” in the yuan, which it said has yet to deviate from its fundamentals. The PBOC has experience and ample policy tools to safeguard a stable foreign exchange market, it said.