China will maintain a supportive monetary policy stance to ensure stable economic growth and high-quality development, according to Pan Gongsheng, governor of the People’s Bank of China.
Speaking at the China Development Forum 2026, Pan said the central bank will continue implementing a moderately loose monetary policy to maintain favorable monetary and financial conditions.
China’s social financing environment remains accommodative, with financial aggregates expanding at a reasonable pace. The central bank will use a combination of policy tools — including adjustments to the reserve requirement ratio (RRR), policy interest rates and open market operations — to keep liquidity ample in the banking system.
Regarding the renminbi (RMB), Pan noted that China follows a managed floating exchange rate regime. Since the start of 2026, the RMB has appreciated by about 1.3 percent against the U.S. dollar, 3.7 percent against the euro, 3.2 percent against the Japanese yen and 2.4 percent against the British pound.
He emphasized that China has neither the need nor the intention to gain trade advantages through currency depreciation.
The RMB has made steady progress in internationalization in recent years, offering businesses and investors more diversified currency options while maintaining relatively low financing costs.
Pan also highlighted China’s commitment to high-level financial opening-up. Efforts will continue to deepen financial market connectivity, enhance cross-border payment system interoperability and facilitate broader participation by international investors in China’s capital markets.
He encouraged overseas investors to actively engage in and invest in China’s financial markets, underscoring the country’s long-term commitment to openness and stability.
