It is beneficial for China's currency to be flexible, but big swings in the yuan's value would be harmful to the economy, a deputy Chinese central bank governor said on Saturday.
"Speculative and flock-driven fluctuations are a big blow to confidence, and are harmful to the real economy," Hu Xiaolian, vice governor of the People's Bank of China (PBOC), told a forum in Shanghai.
The PBOC in mid-June ended the yuan's 23-month de facto peg to the dollar, vowing to implement greater flexibility but also keep the currency basically stable. It has since risen 0.8% against the dollar.
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