China’s Premier Li Keqiang signaled that policy makers will stimulate the nation’s economy if growth continues to slow. His speech led to a jump of Chinese shares, but the yuan was trading lower at the start of the week.
Li Keqiang said at the press-conference on the weekend:
The good news is that in the past couple of years we did not resort to massive stimulus measures for economic growth.
He then added:
That has made it possible for us to have fairly ample room to exercise macro-economic regulation, and we still have a host of policy instruments at our disposal.
While the news is good for the Chinese economy, the yuan did not benefit from this, perhaps because stimulating measures usually mean a weaker currency.
USD/CNY went up from 6.2590 to 6.2625 as of 11:44 GMT today after falling to 6.2073 earlier.
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