China aims for ‘steady’ yuan despite US trade war turbulence

Deputy central bank chief Pan Gongsheng says Beijing will remain on a ‘normal’ monetary policy course and boost support for smaller businesses

Chinese currency expected to be used to offset the impact of US tariffs, analysts say

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China will keep the yuan on a steady course, according to central bank deputy governor Pan Gongsheng. Photo: AP

Published: 5:15pm, 12 Jan 2020Updated: 5:01pm, 17 Feb 2020

China will keep its monetary policy and yuan steady despite “complex external pressure”, a senior Chinese central bank official said just days before the expected signing of a phase one trade deal.

Addressing a forum in Beijing on Sunday, central bank deputy governor Pan Gongsheng, who is also the head of the State Administration of Foreign Exchange, said China was one of the few countries to retain a “normal” monetary policy amid the international trend for negative interest rates.

“China is one of the few major global economies that still has a normal monetary policy. We must continue to implement a sound monetary policy and create a good monetary and financial environment for the promotion of high-quality economic development,” Pan said.

“The People’s Bank of China (PBOC) will adhere to the fundamental requirements of financial services for the real economy, and comprehensively consider economic growth, inflation expectations, overall leverage and exchange rate stability.”

The People’s Bank of China (PBOC) will adhere to the fundamental requirements of financial services for the real economy, and comprehensively consider economic growth, inflation expectations, overall leverage and exchange rate stability.

Pan Gongsheng

He added that the central bank aimed to increase support for small and micro enterprises, as well as the private sector and manufacturers.