RMB exchange rate at appropriate level

21 October, 2019 12:00 AM printer

WASHINGTON: China’s Renminbi (RMB) exchange rate is “at an appropriate level”, judging both from economic fundamentals and from market supply and demand, Yi Gang, governor of the People’s Bank of China, said Saturday in Washington.

“The RMB exchange rate has remained broadly stable at an adaptive and equilibrium level based on market supply and demand and with reference to a basket of currencies,” Yi said in a statement to a meeting of the International Monetary and Financial Committee (IMFC) on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank, reports Xinhua.

“It has been moving in both directions to reflect market conditions,” Yi said in the statement to the IMF’s policy setting committee, which was posted to the IMF’s website on Saturday.

“Depreciation since the beginning of August has been driven and determined by market forces and reflects shifts in market dynamics and volatilities in global foreign exchange markets amid recent global economic and financial developments and escalating trade tensions,” Yi noted.