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Excessive loosening of China's monetary policy would increase yuan pressure: central bank

Chinese 100 yuan banknotes and a U.S. one dollar banknote are seen in this picture illustration in Beijing, China, January 21, 2016. REUTERS/Jason Lee

BEIJING (Reuters) - Excessive loosening of monetary policies in China would create asset bubbles and increase downward pressure on the yuan, the vice governor of China’s central bank warned on Friday.

Yi Gang, a vice governor of the People’s Bank of China, also told an economic forum that the country’s current prudent monetary policy avoids excessive loosening of credit conditions.

Reporting by Shao Xiaoyi and Beijing Monitoring Desk; Editing by Kim Coghill

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