China’s yuan to ‘show good investment value’ as economy recovers, US interest rate gap narrows
- Central bank deputy governor Pan Gongsheng said that as China’s economy recovers, the yuan’s role as a safe-haven asset will become more prominent
- People’s Bank of China governor Yi Gang also said China would actively take part in the Group of 20 (G20) debt relief programme
China’s central bank expects interest rate differentials with the United States to stabilise and the yuan to attract international investors as an asset as well as a currency for trade, financing and hedging, according to its deputy governor.
Pan Gongsheng, who is also the director of the State Administration of Foreign Exchange, said on Friday ahead of the start of the “two sessions” annual parliamentary meetings this weekend that as China’s economy recovers, the yuan’s role as a safe-haven asset will become more prominent.
“At present, the valuation of the domestic stock market is relatively low, and the interest rate difference between China and the United States is stable and convergent, so yuan assets will show good investment value,” Pang told a press conference in Beijing.
