Central bank vice-governor voices confidence amid currency volatility
The monetary authority vowed to stabilize the renminbi amid escala
ted trade tensions, while continuing to push forward financial opening-up and pr
otecting overseas investors’ legal rights, said a senior official from the central bank on Sunday.
“We have the foundation, confidence and capacity to maintain a stable foreign exchange ma
rket in China, and keep the renminbi exchange rate at a reasonably stable equilibrium,” said Pan Gongsheng, vi
ce-governor of the People’s Bank of China, the central bank, said in a statement on its website.
Before his pledge, the onshore renminbi rate depreciated to 6.9182 per do
llar at Friday’s close, the weakest level since December, and the offshore renminbi rate h
American Soybean Association President Davie Stephens said on Tuesday.
President Donald Trump threatened in a tweet on Sunday to increase tariffs.
Stephens, a grower from Clinton, Kentucky, said that US farmers are in a tough situation, and with depressed prices
and unsold stocks forecast to double before the 2019 harvest begins in September, farmers urgently need the China market.
“We need a positive resolution of this ongoing tariff dispute, not further escalation of tensions,” he said in a release posted on the ASA web site.
Nicole Kaeding, vice-president of federal and special projects at the Washington-based Tax Foun
dation, said that if the Trump administration follows through on the president’s threat, it’s US taxp
ayers, not Chinese taxpayers, who will pay the price — thanks to higher prices and fewer job opportunities.