Meeting underlines renminbi stability

A key meeting has called for market participants to safeguard foreign exchange market stability, and warned of speculations over one-way renminbi movements, the People's Bank of China, the country's central bank, said on Wednesday. "Do not bet on one-way appreciation or depreciation of the renminbi, which will definitely inflict losses in the long term," the PBOC said in a statement on Wednesday after the China FX Market Self-Regulatory Framework held a meeting on Tuesday to analyze recent foreign exchange market performance.

The meeting called for members of the framework, responsible for self-regulatory management of the central parity rate quoting of the renminbi against the US dollar, to voluntarily safeguard the overall stability of the market and firmly curb exchange rate surges or slumps, the statement said.

"The foreign exchange market is of great significance and maintaining stability is the first-order requirement," the statement said. The PBOC has accumulated plenty of experience in coping with external shocks and is capable of effectively guiding market expectations.

Albeit the recent depreciation of renminbi against the dollar, the Chinese currency has pronouncedly appreciated against the euro, pound, and yen as one of the very few currencies that has remained strong in the world, the statement said.

The exchange rate of the renminbi has a solid basis to keep stable, the statement added, as China's economic fundamentals will become more robust as macro policy support filters through while the country's trade surplus is likely to stay buoyant.