China is stepping up its game to keep the yuan steady! 💪💰 At a recent meeting, the country's financial regulators pledged to maintain the yuan's exchange rate at a stable and balanced level.
The People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) announced comprehensive measures to stabilize expectations, boost resilience, and strengthen management of the foreign exchange market, according to the China Foreign Exchange Committee.
This committee brings together regulators from the PBOC and SAFE, along with industry players, to guide the foreign exchange market. Their mission? 💼 To tackle pro-cyclical behaviors, curb actions that disrupt market order, and prevent the yuan from overshooting its exchange rate.
PBOC Governor Pan Gongsheng expressed confidence at the 18th Asian Financial Forum in Hong Kong on Monday, saying, \"China has the confidence, conditions, and ability to maintain stable operation of the foreign exchange market.\"
Expanding Cross-Border Financing 🌐
But that's not all! To further support the yuan, China is also expanding cross-border financing options for companies and financial institutions. The macro-prudential adjustment parameter—a key multiplier that sets the limit for cross-border financing—has been bumped up from 1.5 to 1.75!
This move aims to improve macro-prudential management and help businesses optimize their asset-liability structures. It's all part of China's efforts to keep the economy humming smoothly. 🎶
Regulators previously raised this parameter in July 2023, showing a consistent push to enhance financial stability.
With these new measures, China is sending a clear message: they're committed to keeping the yuan strong and the markets stable. 🌟
Reference(s):
China moves to stabilize yuan, expands cross-border financing
cgtn.com
