PBOC’s Zhu: Reconsidering its yuan internationalization strategy

Dhwani Mehta FXStreet

The People’s Bank of China’s (PBOC) is reconsidering its strategy for the internationalization of the yuan and planning for more government support measures, Zhu Jun, Director General of the Chinese central bank’s international division, said at the Bund Summit in Shanghai over the weekend.

Key quotes (source: Bloomberg)

“As everybody knows in the past, the internationalization of the RMB (yuan) sticks to the market principles.”

“The role of the authorities was mainly focused on removing the policy obstacles for the free use of the currency. At this moment, we think there are some kinds of complications in the domestic and overseas situations.”

“The government can be more proactive with policy support to facilitate the role of the markets.”

Related reads

Market should be prepared for yuan to swing both ways – Economic Information Daily
- Forex Today: Covid concerns and fading stimulus hopes boost dollar, weigh on gold, politics eyed

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.