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在线翻译:
szdaily -> Markets -> 
Yuan stability stressed despite hawkish Fed
    2017-03-07  08:53    Shenzhen Daily

    IF China is worried about the freshly hawkish Federal Reserve rocking the yuan, it isn’t showing — yet.

    Leaders of the world’s second-largest economy conveyed a message of stability as the National People’s Congress (NPC) began Sunday in Beijing. Central bank deputies Pan Gongsheng and Yi Gang emphasized that the currency market was steady, with Pan reinforcing that any yuan volatility would be “normal,” even if trading is affected in the short term.

    “China’s main goal is to keep the yuan stable in the first half,” Li Daokui, a professor at Tsinghua University and former adviser to the People’s Bank of China, said in an interview on the sidelines of the NPC. “Conditions aren’t ripe for allowing more volatility.”

    While stability pledges may be reassuring for other emerging markets, which are being anchored by Chinese policy amid shifting sands in the United States, it could be a tough task.

    With the Fed putting a March interest rate hike in play over the past week, a turnaround in the dollar could test the People’s Bank of China. U.S. tightening erodes China’s yield advantage, stepping up depreciation pressure on the yuan and potentially stoking outflows.

    The People’s Bank of China may be reluctant to keep up by raising its benchmark interest rate as that would endanger the budding economic recovery, with the 2017 growth target of about 6.5 percent coming with the hopeful “or higher” qualifier Sunday.

    Given the rebound in the economy is still nascent, China’s focus will be on controlling risk and deflating asset bubbles, said Zhou Hao, an economist in Singapore at Commerzbank AG. “This means that monetary policy will gradually tighten.”

    China has so far managed to avoid an increase in benchmark borrowing costs, tightening conditions in money markets instead as it seeks to curb risks from an uptick in leverage.

    Yi said the yuan will be basically stable in a reasonable range, Xinhua reported Saturday. He previously told Chinese media that monetary policy should be not too loose, nor too tight, as it seeks to stick to its “prudent and neutral” mantra. He also said an interest rate increase isn’t necessary for the time being, Xinhua reported.

    Separately, China Securities Journal cited Yi as saying that the yuan will remain credible and flexible against other major currencies and be stable overall.

    (SD-Agencies)

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