BEIJING — The exchange rate of China's currency, the renminbi, or yuan, has remained basically stable at a reasonable and balanced level this year and will continue in this manner, a senior central bank official said on May 23.

Two-way fluctuations, either appreciation or depreciation, of the yuan will become the norm in the future, with the yuan exchange rate continuing to depend on market supply and demand as well as changes in the international financial markets, said Liu Guoqiang, deputy governor of the People's Bank of China (PBOC).

The managed floating exchange rate system based on market supply and demand, and adjusted with reference to a basket of currencies, is suitable for China at present and for a certain period of time in the future, he said.

The PBOC will guide expectations to keep the yuan exchange rate basically stable at a reasonable and balanced level, he noted.