China central bank indicates two-way fluctuation for yuan

CHINA has succeeded in making its currency a two-way bet, having guided it downwards for much of last month to reverse its upward march. Now, it appears China is not willing to let a depreciated yuan become an entrenched market perception.

On Monday, the People's Bank of China for the first time commented on the yuan, also known as renminbi (RMB). Yi Gang, a vice-governor at the central bank who heads the State Administration of Foreign Exchange, spoke to Chinese media briefly on the sidelines of the opening of the annual parliamentary session, cautioning against over-interpretation of the currency's movements.

"China's economic fundamentals are stable and healthy, its balance of payment reaching...

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