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China yuan level reflects fx supply, demand: central bank researcher

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The current level of China's yuan reflects foreign exchange supply and demand and is appropriate and in line with economic fundamentals, Lu Lei, head of the research bureau at the People's Bank of China, said on Saturday.

[BEIJING] The current level of China's yuan reflects foreign exchange supply and demand and is appropriate and in line with economic fundamentals, Lu Lei, head of the research bureau at the People's Bank of China, said on Saturday.

Mr Lu reiterated the policy goal of keeping the yuan "basically stable on a reasonable and balanced level". "We believe the current level is appropriate, it reflects the situation of the real economy, reflects the surplus and shortfall in global capital, also reflects money supply of our country and other countries," he told reporters on the sidelines of a forum.

On Friday, the yuan ended its best week since 2007 after a rush of dollar sales over the past few days by major state-owned banks, possibly acting on behalf of the central bank.

REUTERS