The State Administration of Foreign Exchange will deepen reform for the yuan exchange rate mechanism and improve foreign- exchange-reserve management, the regulator said today in a statement on its website, after its annual work meeting.
Separately, China‘s central bank will manage liquidity in the banking system, guide steady growth of loans and enhance currency flexibility…
The measures also underscore government concerns that the U.S. Federal Reserve‘s expanded monetary stimulus may cause capital inflow into China, inflating asset values and adding pressure for the yuan to rise. China‘s inflation reached a 28- month high of 5.1 percent in November.