China's central bank to strengthen guidance on market expectations

16 Oct '25

1 min read

China's central bank to strengthen guidance on market expectations

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Insights

To keep the yuan broadly stable, China will strengthen guidance on market expectations and guard against the risk of exchange rate overshooting, its central bank has said.
The country's macroeconomic fundamentals stay sound, with the balance of payments expected to stay broadly balanced on its own, offering a solid foundation for medium and long-term currency stability, a top official from the bank said.

To keep the yuan broadly stable, China will strengthen guidance on market expectations and guard against the risk of exchange rate overshooting, its central bank has said.

A senior official from the central bank's monetary policy department told a newspaper backed by the central bank that the country’s macroeconomic fundamentals stay sound, with the balance of payments expected to stay broadly balanced on its own, offering a solid foundation for medium and long-term currency stability.

The official said the central bank will continue to let the market play a decisive role in the formation of the yuan's exchange rate and maintain its flexibility.

It will "strengthen expectation management and guard against the risk of exchange rate overshooting" to keep the yuan's value generally stable at a reasonable and balanced level.

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