China FX regulator:
- Will keep yuan basically stable at reasonable and balanced levels
- Confident and capable of keeping FX market stable operations
- Exports have maintained resilience
- Recent buying of onshore stocks has increased
- Will continue to implement proactive macro policy
- Global balance of payments will keep basically stable
- FX market resilience will continue
- Ability to counter FX market Volatiity has improved
- Will set up FX management policy evaluation mechanism
- Will improve qualified foreign investor rules
- Will push forward with foreign debt reform and management to improve quota management
- Will forcefully fend off external shocks and risks
- Improve fund management of domestic enterprises listed overseas
- Will take multiple measures to support development of foreign trade firms and further deepen reform of foreign trade, FX Business Management
- Will approve new qualified domestic investor (QDII) quota
Those first couple of points on keeping the yuan stable. The People’s Bank of China (the PBOC oversee SAFE, more below) has been doing a very good job indeed of keeping CNY reasonably stable. The Bank sets a reference rate each day, with USD/CNY allowed to trade a +/- 2% band around this rate. Even when the USD was super-strong in 2024 the PBOC kept a floor under the CNY. As the USD has weakened this year the Bank has guided CNY a little stronger.
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China’s State Administration of Foreign Exchange (SAFE) is a key government agency responsible for managing the country’s foreign exchange reserves (China’s FX exchange reserves are the largest in the world) and regulating the foreign exchange market. SAFE operates under the jurisdiction of the People’s Bank of China (PBOC), China’s central bank.
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