State Council vows to maintain yuan at 'basically stable' level

China pledged to keep the yuan exchange rate "basically stable" after some economists said the country's recent stock market rout threatened its financial stability and might lead to the currency's devaluation.

The yuan exchange rate with major international currencies will remain stable on a basis that the government considers "rational and balanced" in a bid to boost confidence in the currency, as China strives to join the Special Drawing Right system of the International Monetary Fund.

The SDR is an international reserve asset that supplements the existing official reserves of member countries.