Speaking at a G20 meeting of Central Bank Governors and Finance Ministers in Shanghai, the chief of the People's Bank of China (PBOC) Zhou Xiaochuan clarified that China would not stage another devaluation of the Yuan, adding that the Central Bank still has enough room and tools in its monetary policy to cope with potential downslide.       

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Zhou said he is still optimistic about China's economy despite the ongoing downturn. This is the second time that Zhou has publicly denied speculations about an impending devaluation of the Yuan following an interview with Caixin earlier this month.

Addressing concerns about China's falling foreign exchange reserves, the head of China's central bank said that he is not concerned about China's external payment situation. He described that the recent fluctuation in reserves as 'normal.'

On critical issue of reforms, Zhou called for patience. He said that reforms will be implemented when new conditions and opportunities demand it.

"While the reform direction is clear, managing the reform pace will need windows (of opportunity) and conditions...The pace will vary, but the reform will be set to continue and the direction is not changed", Zhou said.                  

International Monetary Fund (IMF) chief Christine Lagard has said that China faces structural reform challenges as the country seeks to open up its financial sector and shift the economy from debt-fueled investment.

Global financial leaders at the ongoing G20 meeting in Shanghai are seeking new ways to calm global volatile markets and spur economic growth in the wake of the ongoing crisis in the Chinese economy.

The downturn in China's economy is the special focus of the meeting as world financial leaders are seeking assurance from Chinese leaders that they will take constructive steps to stall the downturn.                               

TagsHead of People's Bank of China, Zhou Xiaochuan, Chinese Economy