Staff of Reuters Read for 2 minutes The People’s Bank of China (PBOC), the country’s central bank, is seen in Beijing, China, on September 28, 2018. Jason Lee/Jason Lee/Jason Lee/Jason Lee/Jason Lee/Jason Lee/J BEIJING, China (Reuters) – A central bank deputy governor said on Thursday that China will keep its currency stable and make timely adjustments to its policy instruments to help struggling exporters. On Wednesday, the country’s cabinet hinted at the potential of timely reductions in the amount of cash banks must retain as reserves to help struggling small businesses hit by rising raw material prices. When asked about the issue that exporters are losing money on all of their orders, Vice Governor Fan Yifei said at a news conference, “We’ve recognized that some enterprises may have this issue, so we’ll continue to keep the exchange rate stable and make timely adjustments to the policy tools.” The yuan fell on Thursday as the dollar rose to its highest levels in three months and China’s cabinet suggested that banks’ reserve requirements could be reduced to assist economic growth. Through targeted monetary policy tools, the government will continue to push real loan rates lower and slash financing costs for small businesses, according to Fan. Fan also spoke out on cryptocurrencies, expressing Chinese regulators’ concerns over so-called “stablecoins,” which he described as speculative tools that endanger financial and societal stability. While the regulator is cracking down on the cryptocurrency market, Fan said the People’s Bank of China’s own digital currency would be tested during the Winter Olympic Games in Beijing. Tina Qiao, Stella Qiu, Samuel Shen, and Ryan Woo contributed reporting, while Tom Hogue edited the piece./n
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