Pan Gongsheng, governor of the People’s Bank of China (PBOC), during the Asian Financial Forum in Hong Kong, China, on Monday, Jan. 13, 2025.
Lam Yik | Bloomberg | Getty Images
China’s central bank governor said on Sunday a stable yuan currency has been key to global financial and economic stability and Beijing will continue to let the market play a decisive role in deciding the exchange rate.
People’s Bank of China Governor Pan Gongsheng told a conference in Saudi Arabia that while most currencies have fallen against the dollar, the yuan has remained stable.
“Recently, a number of factors have pushed up (the) dollar index, and non-dollar currencies have mostly depreciated. But RMB (yuan) has remained largely stable despite the high market volatility,” Pan said at AlUla Conference for Emerging Market Economies.
He also noted that China was increasingly prioritising consumption, implementing pro-consumption policies such as increasing household income and providing subsidies.
China has emphasised that boosting consumption is a top economic priority in 2025, moving away from an over-reliance on investment to stimulate domestic demand and address potential export challenges.
Pan also said in his speech that China will adopt a proactive fiscal policy and an accommodative monetary policy, and strengthen counter-cyclical policy adjustments.