China's central bank reiterated that there was no basis for continued currency depreciation, calling reports of a possible yuan drop of 10 percent "groundless."
At a closely-watched press conference in Beijing on Thursday, People's Bank of China (PBoC) vice governor Yi Gang also pledged to improve the yuan's pricing mechanism, Reuters reported. Foreign media outlets other than newswires were not permitted to attend the conference.
Officials said the central bank had the tools to keep the yuan stable, adding that the currency could even return to appreciation in the future. Ample foreign exchange (FX) reserves, a trade surplus and a sound fiscal position were factors cited to support a stable currency.
Reuters reported that it had been informed by sources that "powerful voices within government were pushing for the yuan to go still lower, suggesting pressure for an overall devaluation of almost 10 percent."
But the PBoC vice governor dismissed such speculation, adding that there was no need to adjust the yuan to promote exports.