Chinese officials say in the Annual Central Economic Work Conference during the European trading hours on Thursday that the government is focused on maintaining the Chinese Yuan’s (CNY) exchange rate basically stable.

Additional remarks

We will maintain Yuan exchange rate basically stable.

Maintain a necessary fiscal deficit.

We will not relax efforts on grain production, keep food prices at reasonable levels.

China to improve local tax system.

China to improve AI governance.

FX Implications

There has been no discernible impact on the Chinese Yuan from the outcome of the China Central Economic Work Conference. However, the USD/CNY pair has posted a fresh yearly low near 7.0574 during European trading hours amid weakness in the US Dollar (USD).