| The yuan’s exchange rate will become stable “against a basket of currencies” and reflect fundamentals “in the medium to long term”, central bank deputy governor Yi Gang said. China’s capital outflow would also ease once domestic demand was met for portfolio diversification, he said, joining the nation’s top-ranking economist, officials and entrepreneurs to talk up the economy.
Yi, a member of the Chinese People’s Political Consultative Conference, also underscored that China’s foreign reserves were managed in line with the principles of “safety, liquidity and profitability”. “Assets that do not meet liquidity requirements have been completely cut from the official forex reserves,” he said...............................................Full Article: Source
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