PBoC: Will keep yuan exchange rate basically stable

The People’s Bank of China (PBOC) reiterated on Tuesday that it will make prudent monetary policy flexible, targeted and appropriate and added that it will keep the yuan exchange rate "basically stable," as reported by Reuters.

The PBoC further noted it will guide financial institutions to increase medium-to-long-term loans to the manufacturing sector and that it will make the macro leverage ratio basically stable.

Market reaction

The USD/CNY pair largely ignored those remarks and was last seen posting small daily losses at 6.5305.