Economists have been expecting continuous two-way fluctuations of the yuan against the US dollar next year.
Sheng Songcheng, an advisor to the PBOC, said that China is expected to keep the value of the yuan stable and the priority of the country's exchange rate policy is to avoid sharp fluctuations in the currency.
He expected the exchange rate of the yuan against the US dollar to float at around 6.6 by the end of the year.
Meanwhile, Sheng said China will maintain its prudent monetary policy stance next year while the country will likely see a rebound in the growth of M2, a broad measure of money supply, after the financial deleveraging measures already took effect.