BEIJING (Reuters) – The governor of China’s central bank stated on Sunday that a stable yuan is crucial for global financial and economic stability, affirming that Beijing will continue to allow the market to play a significant role in determining the exchange rate.
Pan Gongsheng, Governor of the People’s Bank of China, mentioned at a conference in Saudi Arabia that while many currencies have declined against the dollar, the yuan has maintained its stability.
“Recently, various factors have caused the dollar index to rise, leading to depreciation in most non-dollar currencies. However, the RMB (yuan) has remained relatively steady amidst significant market volatility,” Pan remarked during the AlUla Conference for Emerging Market Economies.
He also highlighted that China is increasingly focusing on consumption by implementing pro-consumption policies aimed at boosting household income and providing subsidies.
China has indicated that enhancing consumption will be a major economic focus in 2025, shifting away from excessive dependence on investment to stimulate domestic demand while addressing potential export concerns.
In his address, Pan noted that China will pursue a proactive fiscal policy alongside an accommodative monetary policy, while also enhancing counter-cyclical policy adjustments.
(Reporting by Selena Li, Sophie Yu, and Ryan Woo; Editing by William Mallard and Jamie Freed)
