File photo of People's Bank of China governor Zhou Xiaochuan [Photo: cs.com.cn]

　　People's Bank of China governor Zhou Xiaochuan says the Chinese yuan has no basis for further depreciation.

　　The central banks chief was interviewed by Caixin magazine and blamed foreign speculators in part for volatility in the yuan.

　　He said China would keep the yuan basically stable versus a basket of currencies while allowing greater volatility against the U.S. dollar.

　　In addition, Zhou Xiaochuan suggested that speculators should not be allowed to dominate market sentiment regarding China's foreign exchange reserves and it was quite normal for reserves to fall and rise.

　　China's foreign reserves fell for a third straight month in January, as the central bank dumped dollars to defend the yuan and prevent an increase in capital outflows.

　　Zhou said he believes yuan exchange reform will help the market be more flexible in dealing with speculative forces.