PBOC sees sustained fall of yuan as unlikely

China has no intention to devalue the yuan to increase exports, and the currency "has no basis for sustained depreciation", the central bank said on Thursday.

The yuan exchange rate formation mechanism remains unchanged, the People's Bank of China said in a statement on its website. It added that although the yuan has weakened against the dollar recently, it remains stable against a basket of currencies.

China's economic fundamentals are sound, with stable economic growth, ample foreign exchange reserves, sound fiscal conditions and a stable financial system bolstering the value of the yuan, it said.