No basis for continuing depreciation: Central bank governor

No intention of "tightening capital control"

Zhou said China had no intention of tightening capital controls, as given the size of the economy and international trade it would be hard to implement.

The PBOC will continue to guard against risks and clamp down on money laundering, tax evasion and illegal financing activities, while assuring free flow of legal cross-border payment, said Zhou.

"As capital flows in and out, foreign reserve might decrease now and increase shortly after. As long as the fundamentals are sound, fluctuation itself is normal," the governor told the magazine, adding that capital outflow and capital flight are two different concepts.

Market-driven reform set to continue

Zhou reiterated that market-driven reform on the exchange rate is set to carry forward during the 13th Five Year Plan. "The PBOC will rely on the market force and use a basket of currencies as a reference, while appropriately managing volatility.

For a large economy like China, it may take relatively some time to achieve reforms, and to wait for a suitable window period is critical, Zhou said, adding that China will reform while being a responsible major economy.