Investing.com - China's yuan exchange rate is determined largely by market forces, People's Bank of China Governor Zhou Xiaochuan said Tuesday.
Zhou told local bank chiefs that China's external payments are the main determinant of the yuan's direction and said the PBOC "doesn't take sides" on the exchange rate in response to a question about the yuan's depreciation in February.
"Financial markets are more sensitive to short term movements. But the PBOC cares more about medium and long term movements. The short-term trend doesn't tell the long term movement," Zhou said.