People's Bank of China's (PBOC) Vice Governor, Yi Gang, has deflected concerns over the possibility of an extended fall in China's foreign exchange reserves and reaffirmed confidence in the strength of the yuan. The PBoC governor said on Tuesday that he was confident China would maintain its current policy stance for a long time, adding that it is not necessary to change it. “The falls in forex reserve was mainly because residents increased their holdings and cut their forex debts. some experts have questioned how low they can go before Beijing is forced to choose between fresh capital controls or to cease giving up selling dollars to defend the yuan. Foreign exchange reserves in China have declined by $99.5bn in January to $3.23tn after a record fall the previous month.
People's Bank of China's (PBOC) Vice Governor, Yi Gang, has deflected concerns over the possibility of an extended fall in China's foreign exchange reserves and reaffirmed confidence in the strength of the yuan. The PBoC governor said on Tuesday that he was confident China would maintain its current policy stance for a long time, adding that it is not necessary to change it. some experts have questioned how low they can go before Beijing is forced to choose between fresh capital controls or to cease giving up selling dollars to defend the yuan. Foreign exchange reserves in China have declined by $99.5bn in January to $3.23tn after a record fall the previous month.