BUSINESS China demonstrates great confidence in stabilizing exchange rate: China's central bank

BUSINESS

China demonstrates great confidence in stabilizing exchange rate: China's central bank

Global Times

16:59, January 15, 2019

China has great confidence in stabilizing the exchange rate and will support the development of the real economy through cutting the reserve requirement ratio (RRR), said Zhu Hexin, vice governor at the People's Bank of China, China's central bank, on Tuesday. 

3fc12a6d-ba1d-4595-bb59-5d50a4badd22.jpeg

Pedestrians walk past the People's Bank of China headquarters in Beijing, China, on January 7. (Photo: VCG)

"We will support the development of the real economy effectively, through the RRR cut. As long as China's real economy develops well and Chinese companies can earn profits, our exchange rate will be more stable, so China can then promote a sustainable economic development," Zhu said, noting that the RRR cut doesn't contradict stabilizing the exchange rate. 

He added China adopts a floating exchange rate regime, which reflects the relationship of market supply and demand.

"The solid foundation of our economy and sufficient foreign exchange reserves strengthen our confidence in the exchange rate," Zhu noted.

China's first RRR cut in 2019 was implemented on Tuesday, which will free up $750 billion capital. This cut was the fifth RRR cut in China since 2018.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue