China’s central bank governor, Pan Gongsheng, emphasized the importance of a stable yuan for global financial stability, reaffirming Beijing’s commitment to allowing market forces to determine the exchange rate. Speaking at the AlUla Conference for Emerging Market Economies in Saudi Arabia, Pan noted that despite the U.S. dollar’s strength and the depreciation of many other currencies, the yuan has remained stable amid market volatility.
Pan highlighted China’s shift towards boosting domestic consumption as a key economic priority for 2025. The government plans to implement pro-consumption measures, including raising household incomes and providing subsidies, to reduce reliance on investment and address potential export challenges. This shift aligns with China’s broader strategy to stimulate domestic demand and sustain economic growth.
Additionally, Pan announced that China will adopt a proactive fiscal policy alongside an accommodative monetary policy, enhancing counter-cyclical adjustments to support the economy. These measures aim to maintain economic stability and foster growth, ensuring resilience in a challenging global financial landscape.
The yuan’s stability, coupled with China’s focus on domestic consumption and supportive fiscal measures, underscores the nation’s strategic approach to navigating global economic uncertainties while sustaining internal economic momentum.
