‘A yuan should be a yuan’, deputy head of China’s foreign exchange regulator says
Having a single value for the currency could help resolve problem of massive capital flows, Lu Lei says
There should be no difference in the trading price of the yuan in offshore and onshore markets, a senior official from China’s foreign exchange regulator said on Wednesday.
“In an ideal situation, there should be only one unified yuan price in the global markets,” Lu Lei, the newly appointed deputy head of the State Administration of Foreign Exchange, told a forum in Beijing.
The former head of the financial stability bureau at the People’s Bank of China said the yuan “can be traded in different places in different time zones, but the trading parties should be the same and there should be no gaps between onshore and offshore prices”.
As a result, there should be fewer speculative capital flows as investors try to profit from the gaps, he said.
Lu did not propose a timetable for the consolidation of the two yuan trading markets, and made it clear that he was not speaking on behalf of the SAFE.