China has ‘halted intervention in yuan exchange rate market’
Market now largely deciding level of nation’s currency, says central bank official, after sustained campaign by authorities to prop up its value amid flow of funds overseas
The recent stability in the yuan exchange rate has been “completely decided by market factors” as the central bank has basically ended its day-to-day intervention in the foreign exchange market, a deputy governor at the People’s Bank of China said on Wednesday.
Pan Gongsheng, who is also the head of the State Administration of Foreign Exchange, told journalists on the sidelines of the opening ceremony of the Communist Party’s 19th party congress in Beijing that the yuan would have a more secure foundation after the leadership reshuffle meeting.
“After the 19th party congress, the yuan will have better foundation to be more stable,” he said.
Pan’s comments came hours after Washington said China had not unfairly manipulated its currency to give it an unfair trade advantage, a charge regularly levelled by US President Donald Trump during his election campaign.
The US Treasury Department study backed China’s interventions to shore up the yuan in a foreign currency report released on Tuesday.