Central bank governor Pan Gongsheng has stressed the importance of China maintaining a sound monetary system that remains resilient to external shocks and systemic risks, signalling a focus on stability ahead of a key policy meeting.
Pan said monetary policy must balance internal and external pressures, “primarily taking into account domestic economic and financial conditions”, while also factoring in the “spillover effects” from other economies, in an editorial for the Communist Party’s People’s Daily on Thursday.
His remarks were part of a series of commentaries by senior Chinese officials in the state mouthpiece in recent weeks, aimed at implementing Beijing’s policy directions outlined at October’s tone-setting fourth plenum for the 15th five-year plan.
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The articles also precede the annual central economic work conference, expected this month, where top leadership sets the agenda for the year ahead.
The governor of the People’s Bank of China also highlighted the importance of “continuously improving the yuan’s exchange-rate-formation mechanism”.
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“[We need to] ensure the exchange rate plays its role as an automatic stabiliser for macroeconomic adjustment and the balance of payments, and to create favourable conditions for implementing monetary policy with autonomy and effectiveness,” Pan wrote.