Published June 30, 2016
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BEIJING - China has no intention of devaluating the yuan to gain an advantage in global trade and there is no basis for long-term depreciation, the central bank said Thursday.
The yuan has generally remained stable despite global volatility after Britain's vote to leave the European Union, the People's Bank of China (PBOC) said in an online statement.
The bank's remarks came after media reports about substantial drops of the yuan's exchange rate by the end of the year.
"The reports misled expectations and disrupted the market, encouraging speculative selling. We strongly condemn the behavior, which is irresponsible and against professional ethics," the PBOC said.
The currency will likely remain stable at a reasonable level thanks to China's sound economic fundamentals, according to the statement.
The Chinese economy will keep its steady growth and continue to see a surplus in the balance of payments, with abundant foreign exchange (forex) reserves, sound financial conditions and stable monetary system, the PBOC said.
China will propel forex reform and continue to let the market to play a decisive role, the bank added.
It was the second time in a week that the PBOC has moved to refute distorted reports by some media outlets. The bank criticized foreign reports on China's interest policy on Monday.
The central bank said that it retains the right to file a complaint through legal channels.
Re-disseminated by The Asian Banker from Xinhua