China’s FX reserve diversification is a long-term policy- Yi

PBOC’s Yi says China’s reserve diversification is a long-term policy. The diversification policy should not lead to short-term FX volatility, Yi said, while adding that China will maintain a basically stable Yuan rate (meaning it will continue to fall with the dollar).

EUR/USD trades at 1.5016.

Earlier today, PBOC adviser Zhou singled out the euro and yen as currencies China was diversifying into, but then said that was only his personal opinion…