(Yicai Global) Aug. 5 -- China's central bank said it can keep the yuan exchange rate stable as the currency broke past 7 per US dollar this morning for the first time since 2008.

The People's Bank of China "has the experience, confidence and capability of keeping the yuan's exchange rate basically stable at a reasonable and balanced level," it said in a statement posted on its website today, attributing the weaker redback to factors such as trade unilateralism and protectionist measures, as well as the expectation of additional US import tariffs on Chinese goods.

The onshore yuan weakened 1.23 percent to 7.0258 against the greenback at 10.08 a.m. local time, breaching the key psychological level, while the offshore rate softened 1.38 percent to 7.0683, breaking 7 for the first time since the market was set up in Hong Kong in 2010.

The PBOC said it will continue to crack down on short-term speculation, maintain the smooth operation of the forex market and stabilize market expectations. It also stressed that the yuan's value against a basket of currencies remains strong and stable. 

The currency's rise and fall reflects fluctuations in forex supply and demand, presenting a significant but short-term impact, the PBOC said. China's sound economic fundamentals, though, continue to support the currency, it added.

China is the only major economy where monetary policy remains normal especially when developed economies such as those in the US and European Union are shifting towards easy money. So China is expected to continue to attract global funds as the redback is more stable due to yuan-denominated assets being undervalued, the PBOC said.

The foreign exchange administration will not veer from its policy of adhering to China's fundamental stance on reform and opening-up, further improving cross-border trade, facilitating investment and better serving the real economy, the bank added.