Central bank bullish on yuan prospects

PBOC has adequate tools to ward off threats from unexpected swings

The People's Bank of China, the central bank, said on Thursday that a currency crisis was unlikely in the country as the long-term optimistic outlook and adequate policy tools would help ward off any potential threats from unexpected currency swings.

Depreciation and appreciation are both likely for the renminbi in the coming days, and the monetary authority has confidence and capacity to maintain the currency value at a reasonably stable level, Liu Guoqiang, a vice-governor of the PBOC, said in a statement on the bank's website.