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Speaking at the China Development Forum in Beijing on Sunday, Bloomberg  has reported that the PBOC “has already withdrawn from day-to-day interventions and now more and more market participants are getting used to a flexible exchange rate”

Additional quotes:

  • China’s financial markets openness to the rest of the world isn’t high
  • Therefore there is a lot of room for increased access
  • PBOC will focus on providing more hedging tools in 2019 to help investors manage risks
  • “We need to improve the financial risk prevention mechanism in line with financial opening-up.”
  • a flexible currency exchange rate is a “complementary” step in China’s opening as it helps absorb risks
  • PBOC “has already withdrawn from day-to-day interventions and now more and more market participants are getting used to a flexible exchange rate”