News & Feeds April 24, 2022

China Can Accommodate Fed’s Rate Hikes, Forex Official Says

China is able to accommodate the impact of the Federal Reserve’s rate hikes, a senior foreign exchange official said, downplaying concerns about the yuan’s weakness and capital outflows. Recent moves in the Chinese currency were market-based and expectations on the yuan have been “basically stable,” said Wang Chunying, spokeswoman of the State Administration of Foreign Exchange. The foreign exchange market will likely remain stable due to China’s resilient economic fundamentals, sustaining trade surplus and foreign direct investment inflows, low foreign debt risks and the increasing flexibility of the yuan