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Economy

China reaffirms yuan stance, loose monetary policy

(Agencies)
Updated: 2010-07-08 16:46
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BEIJING: China will maintain an appropriately loose monetary policy but will use its various monetary policy tools flexibly, the central bank said on Thursday.

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The People's Bank of China, echoing its statement of June 19 when it ended the yuan's 23-month-old peg to the dollar, said it would improve the currency's exchange rate mechanism and adjust its value with reference to a basket of foreign currencies.

In a summary of its second-quarter monetary report, released on the PBOC's website, the central bank said the world's third-largest economy was headed in the direction it expected.