He said that traders and market participants will not overreact to moves from China regarding the yuan as the yuan and the country's foreign exchange reserves have been at the fore front of the market for some time.
The yuan weakened against the U.S. dollar in 2016 as a strong U.S. economic recovery and expectations of more U.S. interest rate hikes supported the U.S. currency.
To prevent the yuan from weakening too far and prompting more capital outflow, China's central bank sold a considerable amount of U.S. dollars to prop up the yuan.
It also tightened regulations by asking those who want to buy large amounts of foreign currency to specify their purpose and provide additional information.
China's foreign exchange reserves fell below three trillion U.S. dollars to 2.99 trillion U.S. dollars in January, the seventh sequential monthly contraction, according to China's State Administration of Foreign Exchange (SAFE).
The persistent decline of China's forex reserves has caused widespread concern about the country's overall financial stability, as the diminishing stockpile, still the world's largest, is perceived as shielding the economy from currency and foreign trade volatility.
But Simonis said forex reserve falling below the three trillion dollars safety mark is just psychological.
"We are paying more attention to the speed at which China is depleting its reserves," said Simonis.
【国内英语资讯:Chinas yuan will stabilize around current level: expert】相关文章:
★ 美国大选与金价
最新
2020-09-15
2020-09-15
2020-09-15
2020-09-15
2020-09-15
2020-09-15