On Monday, January 13, 2025, Pan Gongsheng, the governor of the People’s Bank of China (PBOC), spoke during the Asian Financial Forum held in Hong Kong, China.
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Speaking at a conference in Saudi Arabia, China’s central bank governor highlighted that a stable yuan is essential for global financial and economic stability, confirming that Beijing will continue to allow the market to play a crucial role in determining the exchange rate.
Pan Gongsheng mentioned that while many currencies have depreciated against the dollar, the yuan has shown resilience.
“Recently, several factors have led to an increase in the dollar index, causing most non-dollar currencies to lose value. However, the RMB (yuan) has remained relatively stable amid significant market fluctuations,” Pan stated at the AlUla Conference for Emerging Market Economies.
He added that China is increasingly focusing on enhancing consumption and is implementing measures such as raising household incomes and offering subsidies.
In 2025, China has reiterated its commitment to promoting consumption as a primary economic goal, shifting away from excessive reliance on investment to stimulate domestic demand and tackle potential export challenges.
Furthermore, Pan indicated that China will pursue a proactive fiscal policy alongside an accommodating monetary policy, while reinforcing counter-cyclical policy adjustments.
