Report by Caixin, citing comments by PBOC governor Yi Gang
- Easing of capital controls can help stabilise market expectation and facilitate foreign investment
- China will continue to push forward with market-oriented exchange rate reform
- Will improve market-based yuan exchange rate mechanism
Given the nature of its fixing mechanism, there really isn't much need for the PBOC to step into the market to be fair.
But China will have to keep an eye out on foreign inflows this year, especially now with trade tensions with the US still unresolved and heightened risk of a EM blowout.
