China's forex market to maintain steady operations: official

Xinhua
China's foreign exchange market will maintain steady operation amid the upward trend of major economic indicators.
Xinhua

China's foreign exchange market will maintain steady operation amid the upward trend of major economic indicators, said the head of the country's forex regulator Thursday.

China's financial cycle has been stable in recent years because of its long-term prudent monetary policies, which provide a favorable environment for the running of the economy and the financial markets, Pan Gongsheng, head of the State Administration of Foreign Exchange, said at the 14th Lujiazui Forum held in Shanghai.

He said predictions of China's economic growth in 2023 from international institutions like the International Monetary Fund have improved since the beginning of the year.

Pan, also the deputy governor of China's central bank, said renminbi assets remain highly attractive as they have competitive interest rates and help diversify investment portfolios while inflation is high globally.

Although the renminbi exchange rate saw slight fluctuations since mid-April, expectations of the exchange rate and cross-border capital flows in China's forex market remain stable, said Pan.

"With more experience in dealing with external shocks and prudent policy tools, we have the confidence, conditions, and capabilities to maintain the steady operation of China's forex market," he said.

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