The China Foreign Exchange Committee (CFXC) has pledged to support the Chinese Yuan, following a meeting held in Beijing on Monday under the guidance of the People’s Bank of China (PBOC). The committee outlined a commitment to maintaining the stability of the yuan exchange rate, ensuring it remains at balanced levels.
Key points from the meeting included a focus on strengthening the resilience of the foreign exchange market and implementing measures to address pro-cyclical market activities. Additionally, the committee aimed to tackle behaviors that disrupt market order and mitigate the risks of exchange rate overshooting.
In a separate initiative, the PBOC, in collaboration with the State Administration of Foreign Exchange (SAFE), announced an increase in the macro-prudential adjustment parameter for cross-border financing, raising it from 1.5 to 1.75. This adjustment will take effect on January 13, 2025.
Market reaction to these developments has been positive for the Australian Dollar (AUD), which has drawn support from China’s stimulus efforts. The AUD/USD pair has rebounded from four-year lows, trading 0.21% higher on the day at 0.6161.
Related Topics:
