Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: Yuan To Remain Stable and Flexible - PBOC's Yi

MNI (Singapore)
(MNI) Beijing

China's yuan will see two-way volatility this year and the 7 level of the U.S. dollar-yuan pair is not a “psychological barrier”, said the PBOC governor Yi Gang in a briefing on Friday.

The central bank will ensure the yuan exchange rate is stable and flexible, he said. “The yuan will see moderate volatility this year, which benefits the economy,” said Yi, adding that currency stability is important given some countries were stuck in a middle-income trap due to the sharp depreciations of currencies. The flexibility of the yuan has improved in recent years, he said.

Pan Gongsheng, vice-governor of the PBOC, said the yuan will be supported by a widening of the growth rates between China and the U.S, the narrow interest spread between the two countries, the rising value of the yuan as an investment and save haven asset, and growing experience of forex market regulators.

Yuan internationalisation is facing a benign environment as the global currency system is further diversifying. The PBOC will improve cross-border financing and settlement, push growth of the offshore yuan market, promote mechanisms to aid yuan liquidity supply in the offshore market and the capacity of cross-border capital movement management, said Pan.


To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.