Deputy Governor of the People's Bank of China Yi Gang stated that China’s economy remains solid. In his words, the yuan will be stable despite the current decline in the stock market.
“The Chinese economy’s fundamentals are fine. No one can predict exactly on the market volatility, but I’m confident that the exchange rate will be more or less stable around the equilibrium level,” Yi Gang said.
Growing concerns over a slowdown in the Chinese economy and prospects of its national currency devaluation are considered to catalyze drops in developing countries’ currencies and stock markets.
Nouriel Roubini, the chairman of Roubini Global Economics noted that the Chinese slowdown is “going to be a bumpy landing but something short of a rough landing”. According to the economist, market participants become too pessimistic about prospects for China’s economic growth and officials’ ability to manage the deepening slowdown together with current instability in the stock market and fluctuations in the national currency exchange rate.
However, the Deputy Governor of the People's Bank of China is absolutely sure about a 7% rise in GDP growth rate which can still take place in 2015. Meanwhile, China’s GDP growth remained flat at 7.0% in the second quarter of 2015 compared to the previous one.
