PBOC Vice Governor Yi expects China’s imports of Crude Oil to rise

China Central Bank (PBOC) vice governor Yi Gang was on the wires last minutes via MNI, noting that markets should expect increased yuan fluctuations, while adding that the central bank will continue to aid the yuan-internationalization process.

Key Quotes:

Consumption will be main driver of growth

China’s imports of Crude Oil will rise, demand for other commodities will be strong

Will continue to make Yuan exchange rate more flexible

Will put more emphasis on basket regime for Yuan

There will be increased yuan fluctuations vs. dollar

Yuan will stable relatively stable vs. basket of currencies

China has independent monetary policy, can still control interest rates

Yuan internationalisation will be market driven

Goal of internationalizing renminbi has not been changed

Keep in mind that stability is very important

Will maintain delicate balance between reforms and stability

Robust growth & fx stable versus basket good for everybody