China says no basis for the yuan to continue to devalue: PBOC

[BEIJING] China's central bank said on Tuesday there was no basis for the yuan to continue to devalue and it would keep the currency basically stable.

Inclusion of the yuan into the Special Drawing Rights (SDR) would make the yuan more stable, Yi Gang, vice governor of the People's Bank of China (PBOC) said at a news conference on Tuesday.

The International Monetary Fund admitted China's yuan into its benchmark currency basket on Monday, alongside the dollar, euro, pound sterling and yen. Some traders have expected Beijing will start to allow the currency to weaken soon after to reflect China's slowing economy.

Inclusion in the SDR also will make yuan cross border investment more convenient, he said.

The inclusion of China's yuan into the Special Drawing Rights (SDR) basket is not a one-off move, he said, and reforms will continue.

The inclusion of the yuan into the SDR shows that international society has acknowledged China's economic development, he said.

REUTERS