BUSINESS Chinese yuan to remain stable: PBOC deputy governor

BUSINESS

Chinese yuan to remain stable: PBOC deputy governor

Xinhua

20:10, June 10, 2021

File photo: AFP

SHANGHAI, June 10 (Xinhua) -- The exchange rate of the Chinese currency renminbi, or the yuan, is expected to remain stable, with two-way fluctuations becoming normal, said Pan Gongsheng, deputy governor of the People's Bank of China (PBOC) Thursday.

The stability of the yuan's exchange rate is better than other currencies, and transactions in China's foreign exchange (forex) market have been rational and orderly, Pan said at the Lujiazui Forum in Shanghai.

Pan said that China's sustained economic recovery has contributed to the generally stable yuan.

The change in the exchange rate of the yuan is subject to multiple factors at home and abroad, Pan said. He added that China's consolidated growth momentum, normalized monetary policies, and a more mature forex market have helped underpin the yuan's stable exchange rate.

Pan also cautioned that uncertainties in the world, including uneven global recovery, rising inflation pressure, and a fragile financial market, might affect exchange rates in the future.

Stressing the importance for enterprises to cope with two-way fluctuations, Pan urged market entities to adapt to it, arrange their currency structure prudently, and refrain from currency speculation.

To help firms lower risks from exchange rate fluctuations, China will establish an open and competitive forex market, improve market transparency, and strengthen prudent macro-management, Pan said.

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