China will aim to keep the yuan's exchange rate stable at a reasonable and balanced level and for the economy's potential growth rate to be in a reasonable range, said People's Bank of China Gov. Yi Gang.
The remarks by the central bank governor came as the Chinese currency has faced mounting downward pressure against the U.S. dollar in recent months, while the economy remains pressured by a prolonged property-sector slump and a stringent Covid-19 policy.
In a speech Wednesday, Mr. Yi said the PBOC will continue to let the market play a decisive role in the yuan exchange rate, noting that the central bank has managed the currency's exchange rate in a managed and floating system.
Although the Chinese economy faces some challenges and downward pressure, it continues to recover on the whole, said Mr. Yi, according to a transcript published on the PBOC website.
The Chinese economy grew 3.9% from a year earlier in the third quarter, beating economists' predictions. But growth momentum cooled again in October, with official gauges of factory and service activities tumbling into contractionary territory.
China has stepped up support for the real economy by rolling out policies to shore up infrastructure investment and equipment innovation, which should demonstrate "visible" effects in the fourth quarter, Mr. Yi said.
Further, Mr. Yi said that the PBOC actively supports the healthy development of the property sector, and that property sales and credit supply have recently improved slightly.
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(END) Dow Jones Newswires
11-01-22 2352ET
