SHANGHAI, July 3 (Reuters) - It is beneficial for China's currency to be flexible, but big swings in the yuan's value would be harmful to the economy, a deputy Chinese central bank governor said on Saturday.
'Speculative and flock-driven fluctuations are a big blow to confidence, and are harmful to the real economy,' Hu Xiaolian, vice governor of the People's Bank of China (PBOC), told a forum in Shanghai.
The PBOC in mid-June ended the yuan's 23-month de facto peg to the dollar, vowing to implement greater flexibility but also keep the currency basically stable. It has since risen 0.8 percent against the dollar.
(Reporting by Samuel Shen and Jason Subler; Editing by Sanjeev Miglani)
((jason.subler@thomsonreuters.com; +8621 6104 1733; Reuters Messaging: jason.subler.reuters.com@reuters.net)) Keywords: CHINA ECONOMY/YUAN (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Speculative and flock-driven fluctuations are a big blow to confidence, and are harmful to the real economy,' Hu Xiaolian, vice governor of the People's Bank of China (PBOC), told a forum in Shanghai.
The PBOC in mid-June ended the yuan's 23-month de facto peg to the dollar, vowing to implement greater flexibility but also keep the currency basically stable. It has since risen 0.8 percent against the dollar.
(Reporting by Samuel Shen and Jason Subler; Editing by Sanjeev Miglani)
((jason.subler@thomsonreuters.com; +8621 6104 1733; Reuters Messaging: jason.subler.reuters.com@reuters.net)) Keywords: CHINA ECONOMY/YUAN (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.