China: Will deepen exchange rate reform, keep yuan rate basically stable

After concluding its annual Central Economic Work Conference, China has reiterated that it will maintain the sustainability, stability and the continuity of macro policies, Reuters reports, citing Chinese state media. 

Additional takeaways

"China will continue to implement a proactive fiscal policy."

"China will make prudent monetary policy flexible, targeted, appropriate."

"China will keep money supply, total social financing growth largely in line with nominal economic growth."

"China will keep macro leverage ratio basically stable."

"China will appropriately deal with the relationship between economic recovery and risk prevention."

"China will maintain the necessary policy support for china's economic recovery in 2021."

"China will replenish banks' capital via multiple channels."

"China will deepen the exchange rate reform, keep the yuan exchange rate basically stable."

"China will expand domestic demand, promote employment, expand the middle-class group."

"China will prevent a large-scale resurgence of coronavirus epidemic."

Market reaction

The USD/CNY pair showed no immediate reaction to this statement and was last seen gaining 0.1% on the day at 6.5388.