File Photo: IC

The long-term strengthening trend of the yuan will not change, and people will regret dumping China's currency and buying foreign exchange, an official from the banking regulator said on Friday.

Companies and individuals who have looked to devalue the Chinese yuan have suffered losses over the past 30 years, and will definitely regret selling the currency and purchasing foreign exchange, according to an official from the China Banking and Insurance Regulatory Commission (CBIRC), China Banking and Insurance News reported.

The official said that China's economy remains strong and resilient with sufficient potential, adding that the current obstacles are caused by unanticipated factors, and the long-term trend of China's economic growth will not change.

The official also noted that the market position of the yuan will not change despite the short-term impact, adding that China's continuous balance of payments surplus and huge net assets of investment abroad guarantee the stability of the exchange rate for the yuan.

The People's bank of China (PBC) and the State Administration of Foreign Exchange have revised up the macro-prudential adjustment parameter for cross-border financing to 1/25 from 1, according to a statement from the PBC, aiming to broaden sources of cross-border capital for businesses and financial institutions and encouraging them to improve their asset and liability structure.

The report also said that the CBIRC will fully support stabilizing economic development by implementing measures to support steady growth, stabilizing investment, maintaining employment, service and foreign trade, and supporting consumption and technology innovation.

In the first three quarters of 2022, new yuan loans reached 18.08 trillion yuan ($2.49 trillion), a year-on-year increase of 1.36 trillion yuan.