China SAFE’s Pan: Does not expect disorderly depreciation of the currency

Comments by China’s FX regulator, State Administration of Foreign Exchange (SAFE), Chief Pan Gongsheng crossed the wires last hour, citing that he does not expect disorderly depreciation of the yuan.

Additional Comments:

Despite impact from external factors such as trade tensions.

Changes in the exchange rate will not lead to large-scale deleveraging in foreign debt.

China has confidence and capability to effectively fend off shocks and risks.

The above comments have virtually no impact on the market, as the risk sentiment is mainly driven by the US-China trade jitters. USD/JPY hit fresh seven-month lows near 105.20 while the Aussie fell to 0.6750 levels.