On March 22, the Governor of the People's Bank of China, Pan Gongsheng, delivered a keynote speech at the China Development Forum. He stated that the central bank will maintain a supportive monetary policy stance to foster a favorable monetary and financial environment for stable economic growth, high-quality development, and the smooth operation of financial markets.
Regarding specific financial support measures, Pan Gongsheng outlined a multi-dimensional approach. At the monetary policy level, the central bank will continue to implement appropriately accommodative monetary policies. Currently, China's social financing conditions are accommodative, with reasonable growth in the overall financial aggregate. The central bank will balance the relationship between short-term and long-term objectives, supporting real economic growth while maintaining the health of the financial system, and managing internal and external equilibriums. It will comprehensively utilize various monetary policy tools, including the reserve requirement ratio, policy interest rates, and open market operations, to ensure ample liquidity.
On exchange rate policy, Pan Gongsheng emphasized, "China has no need, nor any intention, to gain trade advantages through currency depreciation." He stated that the central bank's position has always been clear: it adheres to the decisive role of the market in exchange rate formation, maintains exchange rate flexibility, and simultaneously strengthens expectation guidance to keep the RMB exchange rate fundamentally stable at an adaptive and equilibrium level. The central bank's guidance of expectations and its use of transparent, internationally-compliant macroprudential management tools help correct market "herd behavior" and market failures, preventing the destructive equilibriums repeatedly seen in international financial history.
Data shows that since the beginning of the year, the RMB has appreciated to varying degrees against the US dollar, euro, Japanese yen, and British pound, demonstrating strong resilience. Pan Gongsheng noted that, according to the International Monetary Fund's classification, China implements a managed floating exchange rate regime. This year, the RMB has appreciated approximately 1.3% against the US dollar, 3.7% against the euro, 3.2% against the Japanese yen, and 2.4% against the British pound.
Regarding financial openness, Pan Gongsheng stated that China will steadily promote high-level opening of the financial sector, deepen the connectivity of financial markets and cross-border payment systems, and facilitate greater participation by foreign investors in China's financial markets. Specifically, the scale of China's stock and bond markets currently ranks second globally. By the end of 2025, holdings of domestic RMB financial assets by overseas institutions and individuals had exceeded 10 trillion yuan.
Furthermore, Pan Gongsheng indicated that positive progress in the internationalization of the RMB has continued in recent years. In 2025, Panda bond issuances by foreign governments and financial institutions exceeded 170 billion yuan, and the scale of offshore RMB bonds further expanded. With relatively low RMB financing costs, this will provide diverse currency options for domestic and international entities participating in China's economic transformation, improving financial services for cross-border trade and investment.
Pan Gongsheng emphasized that the central bank will actively participate in and advance the reform and improvement of global financial governance. It will strengthen communication and coordination on international macroeconomic policies, improve the governance of international financial organizations, and build a diversified and efficient global financial safety net to more effectively safeguard global economic and financial stability.
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