China’s SAFE: Will continue to maintain flexibility in yuan exchange rate

“China will continue to maintain flexibility in the yuan exchange rate,” the State Administration of Foreign Exchange (SAFE), China’s fx regulator, said on Thursday.

Key takeaways

China outstanding foreign debt $2.68 trillion at end-June vs $2.53 trillion at end-March.

China outstanding short-term foreign debt $1.51 trillion at end-June vs $1.40 trillion at end-March.

Will steadily promote the high-level opening of the capital account.

Will improve pilots in domestic stock issuance by overseas institutions, bond capital management.

Will support financial institutions to roll out more forex derivatives to meet market demand.

Will continue to maintain flexibility in the yuan exchange rate.

On Wednesday, the SAFE announced that it tightened control over the inner workings of its currency market, enhancing scrutiny of forex dealers, per Reuters.