“In case the US Federal Reserve alters its monetary policy stance, its impact on China's foreign exchange market is controllable,” Pan Gongsheng, Deputy Governor of the People's Bank of China (PBOC) said at the 2021 Annual Conference of Financial Street Forum held in Beijing.
Key quotes
“Cross-border capital flows are to continue, and the exchange rate of the Chinese currency renminbi (RMB) will remain stable at a reasonable and balanced level.”
“The country's solid economic fundamentals will guarantee that China's foreign exchange market can cope with external shocks.”
"The flexibility of RMB exchange rates has also been enhanced.”
Market reaction
USD/CNY was last seen trading at 6.3902, down 0.05% on the day. The spot meanders in four-month lows.