China pledges efforts to maintain stable RMB exchange rate

BEIJING -- China will unswervingly keep the RMB exchange rate basically stable at a reasonable and balanced level, according to a meeting.

The People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) will continue to take comprehensive measures to stabilize expectations, enhance resilience and strengthen management of the foreign exchange market, the recent China Foreign Exchange Committee meeting in Beijing stated.

Resolute efforts will be made to rectify pro-cyclical market behaviors, address actions that disrupt market order, and guard against the risk of exchange rate overshooting, the meeting said.

The committee will strengthen guidance concerning the foreign exchange market self-regulatory framework and enhance industry self-regulation. The meeting urged members to prioritize serving the real economy and ensure a stable exchange rate environment for both businesses and residents.

The meeting also noted that China's foreign exchange market operated smoothly under the management of the PBOC and the SAFE in 2024, while the Chinese yuan logged a generally strong performance compared with other major currencies.

In recent years, China's foreign exchange market has made solid progress, and the ability of market participants such as financial institutions and enterprises to cope with external shocks has been significantly improved, it said.

It added that the fundamentals of China's economic recovery will not change, neither will its overall balance of international payments nor the resilience of its foreign exchange market, while the yuan remains capable of maintaining basic stability.

"China has the confidence, conditions and ability to maintain stable operation of the foreign exchange market," Pan Gongsheng, governor of the PBOC, said at the opening ceremony of the 18th Asian Financial Forum held in Hong Kong on Monday.