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U.S. Fed policy shift impact on China's forex market controllable: PBOC official

2021-10-21 10:24

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BEIJING, Oct. 21 (Xinhua) -- The impact of U.S. Federal Reserve policy shift on China's foreign exchange market is controllable, said Pan Gongsheng, deputy governor of the People's Bank of China (PBOC), on Wednesday.

Cross-border capital flows are to continue, and the exchange rate of Chinese currency renminbi (RMB) will remain stable at a reasonable and balanced level, Pan said at the 2021 Annual Conference of Financial Street Forum held in Beijing.

Pan said the country's solid economic fundamentals will guarantee that China's foreign exchange market can cope with external shocks.

China's economy maintains a recovery trend, with major macroeconomic indicators running in an appropriate range and the employment staying basically stable, he said.

"The flexibility of RMB exchange rates has also been enhanced," Pan said, adding that the PBOC and the State Administration of Foreign Exchange have continuously improved the counter-cyclical macro-prudential management tools and accumulated more experience in dealing with risks.

The country also saw an optimized inflow of capital, according to Pan.

In recent years, China's foreign debts are mainly held by long-term overseas investors through RMB bonds, which is with high stability, Pan said.
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