China’s Central Bank Chief: Yuan Is Key To Global Financial Stability

China’s central bank governor has stated that a stable yuan has been crucial to global financial and economic stability and that Beijing will continue to allow the market to play a decisive role in determining the exchange rate, Selena Li, Sophie Yu, and Ryan Woo reported for Reuters.

China has emphasized boosting consumption as a top economic priority in 2025.

People's Bank of China Governor Pan Gongsheng told a conference in Saudi Arabia that, while most currencies have depreciated 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 the RMB (yuan) has remained largely stable despite high market volatility," Pan said at the AlUla Conference for Emerging Market Economies.

He also noted that China is increasingly prioritizing domestic consumption, implementing pro-consumption policies such as raising household income and providing subsidies.

China has emphasized boosting consumption as a top economic priority in 2025, shifting away from an over-reliance on investment to stimulate domestic demand and address potential export challenges.

Pan added that China will adopt a proactive fiscal policy, maintain an accommodative monetary policy, and strengthen counter-cyclical policy adjustments.