The People's Bank of China has drawn up plans in response to the upcoming impact of the United Kingdom's Brexit referendum on the financial market, the central bank wrote on its website on Friday.
China's central bank published the notice after United Kingdom voters elected to leave the European Union, an historic decision that will have long term impact on the global financial market.
The central bank is determined to keep the yuan stable within a reasonable range and pledged to let the market play a bigger role in determining the yuan exchange rate and improve the currency's two-way flexibility.
The central bank will enhance communication with major international banking institutions and central banks, the notice said.
Liu Dongliang, a China Merchants Bank economist, said the yuan is under depreciation pressure as a result of risk aversion on the back of the UK referendum. But the pressure will be only short term, as the central bank has enough measures to tackle the possible challenge.
"The impact to exchange rate of yuan brought by referendum is under control," Liu said.
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