Chinese currency yuan weaken against the U.S. dollar does not signify its devaluation, Fan Gang, member of Monetary Policy Committee of the central People’s Bank of China (PBOC) said lately.

Although the yuan downed against the U.S. dollar, it is in a stable condition against a basket of currencies measured by the real effective exchange rate, according to Fan.

In addition, he added, the move of rate changes indicates a more market-based system and the decisive role the supply-demand relationship plays in determining the exchange rate.