PBOC: Will keep forex reserves at a reasonable, appropriate level

PBOC officials note that it is normal to see changes in forex reserves, and that they will keep forex reserves at a reasonable, appropriate level.

Headlines

Recent changes to reporting method for forex purchases and sales are intended to avoid misreading of data by market

Supply and demand will play main role in determining yuan exchange rate in medium and long term

Exchange rate will reflect economic fundamentals

To keep renminbi basically stable against a basket of currencies

Will look for opportunities at the appropriate time to push forward yuan exchange rate reform

Pace of reform may speed up or slow down depending on availability of appropriate time window

January loan surge due to seasonal factors

Monetary policy is prudent with a slight easing bias