CHINA-ECONOMY: WEAKENING OF THE YUAN
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The Vice President of the People's Bank of China (PBoC) and the Director of the State Administration of Foreign Exchange (SAFE), Pan Gongsheng, introduced the establishment of a private enterprise bond financing at a briefing on the policy of the State Council at the State Council Information Office held a briefing on the policy of the State Council on October 26, 2018. He cited the following four reasons for the weaker RMB: (i) Higher US interest rates; (ii) Stronger USD; (iii) Disturbances in international financial markets; and (iv) Trade frictions. He emphasised that “Compared with [other currencies], the renminbi…is still a relatively stable currency” and assured "We will not engage in competitive devaluation and will not use the RMB exchange rate as a tool to deal with external disturbances such as trade disputes.”
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