BEIJING: China will flexibly and efficiently use monetary policy tools such as cuts to the reserve requirement ratio (RRR) and interest rates this year, and curb "involution-style" competition in some sectors, the central bank governor said on Friday.
Pan Gongsheng of the People's Bank of China (PBOC) said the U.S.-Israeli war on Iran has led to a sharp spike in risk aversion sentiment in global financial markets, fuelling pronounced volatility in the dollar index and other currencies.
The PBOC will maintain the yuan currency's flexibility and encourage financial institutions to offer hedging services to business, Pan said, adding that more than 60% of China's trade is less exposed to currency exchange rate swings. - Reuters
