China central bank sees no reason for yuan to fall further

Beijing

CHINA'S central bank governor said there's no basis for continued depreciation of the yuan because the balance of payments is good, capital outflows are normal and the exchange rate is basically stable against a basket of currencies, according to an interview published on Saturday in Caixin magazine.

Zhou Xiaochuan dismissed speculation that China plans to tighten capital controls and said that there's no need to worry about a short-term decline in foreign-exchange reserves, adding that the country has ample holdings for payments and to defend stability.