China Has Brexit Tools, Must Avoid Undue Intervention: AIIB
- China has fiscal space to handle market turbulence: Jin Liqun
- Central bank should ensure sufficient liquidity: Jin
The Union Jack is hoisted next to the flag of the People's Republic of China
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China has ample fiscal space to cope with any market turbulence triggered by Britain’s decision to leave the European Union but should limit intervention to alter the yuan’s value, said the head of the Asian Infrastructure Investment Bank.
Policy makers should also ensure sufficient liquidity to help manage fallout from Brexit while avoiding a build up of inflationary pressures, Jin Liqun, the new China-backed development bank’s president, said in an interview Sunday with Bloomberg Television’s Haslinda Amin. The yuan is at about fair value and policy makers should be tolerant of any market volatility, he said in Beijing.