China Foreign Exchange Committee (CFXC) vowed to support the Chinese Yuan in a meeting held in Beijing under the guidance of the People’s Bank of China (PBOC) on Monday.
Key takeaways
The meeting discussed resolutely keeping the yuan exchange rate basically stable and at balanced levels
To increase forex market resilience, strengthen forex market.
Measures announced to correct pro-cyclical market activities, deal with behaviors disrupting market orders, prevent exchange rate overshooting risks.
In a separate effort, the PBOC and the State Administration of Foreign Exchange (SAFE/ China’s FX regulator) have raised the macro-prudential adjustment parameter for cross-border financing from 1.5 to 1.75, effective January 13, 2025.
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