The Foreign Exchange Committee in China (CFXC) held an emergency meeting on Monday morning, organized by the People's Bank of China. The meeting included representatives from major financial institutions to discuss possible means to provide some support to the Chinese yuan at this time.
This meeting of the Chinese Foreign Exchange Committee, which is rarely held, comes at a time when the Chinese yuan is trading at its lowest levels in four months against the US dollar, amid continued weak economic performance in the People's Republic, despite the stimulus and wide-ranging monetary easing implemented by the People's Bank of China so far, which has already exerted significant pressure on the yuan.
During the meeting, the committee discussed the necessity of firmly maintaining the Chinese yuan's exchange rate at a mostly stable and balanced level, and they promised to increase the flexibility of the forex market.
The committee emphasized that the measures to be announced are aimed at correcting market activities that favor the economic cycle, adding that they are addressing behaviors that disrupt market orders, thus preventing risks of exceeding the exchange rate.
