PBOC ‘Confident’ Yuan Can Stay Stable, According to Governor’s Remarks
- Could examine whether to stop releasing benchmark lending rate
- Yi spoke at meeting on May 18, according to a media report
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People’s Bank of China’s Governor Yi Gang said he’s “confident” the yuan will stay basically stable at a reasonable and equilibrium level, as many factors favor a stable currency.
The yield spread between U.S. and Chinese 10-year sovereign bonds was “still in a relatively comfortable range” and the case for the Federal Reserve to raise interest rates was smaller, Yi said on May 18, according to an article published Tuesday by China’s Securities Journal. Both of these are favorable to keeping the yuan stable, Yi said at a meeting held that day.