China to keep RMB exchange rate at reasonable, balanced level: central bank

BEIJING -- China will maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, Zou Lan, deputy governor of the People's Bank of China (PBOC), told a press conference on Monday.

The U.S. announcement of tariff hikes on multiple economies has triggered sharp fluctuations in the global financial market, Zou said. However, China's financial market has demonstrated strong resilience and operated smoothly, he added.

For a long time, China's investment concerning foreign exchange reserves in the international financial market has oriented toward safety, liquidity, and preservation and appreciation, and the investment portfolio has been effectively diversified, he said.

The impact of changes in a single market and a single asset on China's foreign exchange reserves is generally limited, Zou noted.

China has a solid economic foundation, an essentially balanced international payment sheet, and a resilient foreign exchange market, which will continue to provide strong support for maintaining the basic stability of the RMB exchange rate, he said.

In the next step, the PBOC will continue to implement a moderately loose monetary policy and intensify support for the real economy. It will also strengthen the resilience of the foreign exchange market, stabilize market expectations, enhance market management, and prevent the RMB exchange rate overshoot, Zou added.