China's Central Bank Governor Emphasizes Stable Currency for Global Stability
In a speech at the AlUla Conference for Emerging Market Economies, People's Bank of China Governor Pan Gongsheng highlighted the significance of a stable yuan currency for global financial and economic stability. He emphasized that China remains committed to letting the market play a decisive role in determining the exchange rate.
While most currencies have depreciated against the US dollar, Pan noted that the yuan has demonstrated resilience, maintaining stability despite market volatility. This stability, he stated, is attributed to China's prioritization of consumption, which includes policies to increase household income and provide subsidies.
Furthermore, Governor Pan stressed that China will adopt a proactive fiscal policy and an accommodative monetary policy, while strengthening counter-cyclical policy adjustments. This approach aims to stimulate domestic demand and mitigate potential export challenges.