PBOC Official: Cross-border capital flows will not have big impact on yuan

An official at the People’s Bank of China (PBOC) said in a statement on Friday, cross-border capital flows will not have big impact on the yuan.

Additional quotes

China's economy was under relatively big downward pressure in Q1.

China banks' excess reserve ratio at 2.1% at end-march.

The monetary policy transmission mechanism has been improving.

China will keep benchmark deposit rate for a long time.

Falling lending rates help stabilize deposit rates.

China's macro leverage ratio rose by 5 percentage points in 2019.

China should allow macro leverage ratio to rise in a phased way to expand credit to cope with virus impact.

China is far away of having liquidity trap.

Cross-border capital flows will not have big impact on yuan, which is showing greater flexibility.

Some banks have started to lower actual deposit rates due to falling lending rates.