China central bank pledges to keep yuan stable

The news: China’s state-owned banks stepped up intervention in the currency market as the country’s central bank pledged to prevent a surge in yuan volatility, Bloomberg reports.

The numbers: The yuan has lost about 2.4% against the US dollar this month, and 6% since the start of the year amid weaker economic data.

The context: The People’s Bank of China (PBOC) said it will resolutely prevent “over-adjustment” in the yuan, and noted it had experience and ample policy tools to safeguard a stable foreign exchange market, according to its quarterly monetary policy report published on Thursday. It comes as Chinese authorities are believed to have told state-owned banks to step up intervention in the currency market this week and are studying other ways to prop up the yuan.