Yuan Increasingly Viewed As A “Safe Haven” - PBOC Official

The yuan will continue to be resilient during the current U.S. dollar appreciation cycle, and is increasingly considered a “safe haven”, Pan Gongsheng, Vice Governor of People's Bank of China and director of the State Administration of Foreign Exchange, told the 2022 Financial Street Forum annual meeting on Monday. Pan said the yuan's resilience reflects its two-way floating exchange rate, China’s current account surplus, relatively stable cross border capital flows, the yuan's increasing internationalisation, and use of hedging tools. He believed the US dollar appreciation cycle may be peaking, and the recent 20-point Covid-control relaxation plan and 16-point real-estate package would support China's growth.