China’s Central Bank Chief Signals Phasing Out Currency Intervention
(17 April 2023 – United States) China can phase out currency intervention by gradually reducing the amount and frequency of its forays into the market, the country's central bank governor said during a seminar in Washington on Saturday.
This underscores Beijing's resolve to keep up efforts to boost the yuan's global presence. The governor also said that the central bank will seek to guide monetary policy so that real interest rates move slightly below the potential growth rate.
Chinese leaders have pledged to step up support for the world's second largest economy, which is slowly rebounding from a pandemic induced slump after coronavirus related curbs were abruptly lifted in December.
“We have been trying to maintain the exchange rate stable for some time. If you go on forever, then one day I would say that markets would defeat the central bank,” said People’s Bank of China Governor, Yi Gang.
"Interest rate is the key and exchange rate is determined by market. That's the basic message I want to get across," he added.
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