China central bank official says yuan at right level

BEIJING: China’s yuan is at an appropriate level currently and two-way fluctuations in the currency will not necessarily cause disorderly capital flows, a senior official at the People’s Bank of China told Reuters on Tuesday.
The yuan has weakened nearly 2.4 per cent since US President Donald Trump threatened earlier this month to impose more tariffs on Chinese goods from September 1, though there are signs China is trying to stem the declines.
“The current level of RMB exchange rate is appropriately aligned with fundamentals of China’s economy and market supply and demand,” Zhu Jun, head of the central bank’s international department, said in an interview with Reuters.
She said China was “shocked” by the US Treasury Department’s move last week to label China a currency manipulator, hours after Beijing let the yuan drop through a key support level to its lowest point in more than a decade. — Reuters