One of China’s senior-most central bank and foreign exchange officials has reiterated the importance of opening up the country’s financial sector, while also flagging diminished intervention in exchange rates.
Pan Gongsheng (潘功胜), vice-governor of the People’s Bank of China and head of the State Administration of Foreign Exchange, said to stcn.com reporters at the 19th National Congress of the Chinese Communist Party that given the stability and increasing “marketisation” of the RMB exchange rate, the central bank had already “basically withdrawn from normalisation intervention.”
Pan said that the RMB exchange rate would have an even more stable foundation following the 19th National Congress, and that the basic principle of increasing exchange rate flexibility while maintaining fundamental stability would remain unchanged.
With respect to the further opening up of China’s financial sector, Pan said that this was a key strategic imperative for China, and that advancing external opening was important work for both Chinese finance and foreign exchange management.
In his capacity as PBOC vice-governor Pan said that the basic tone of monetary policy would remain stable and neutral.