(Bloomberg) -- China's central bank governor reiterated the nation's commitment to further opening up its financial sector and lowering market barriers to foreign investors.
“The new development pattern is not to close the door and to operate in isolation,” People's Bank of China Governor Yi Gang said in a speech at the 2020 Bund Summit in Shanghai on Saturday. “Rather it is to make better use of the markets and resources at home and abroad so as to achieve a more robust and sustainable development.”
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Yi said regulators should be vigilant about potential hazards as the nation opens up and to build various “firewalls” to improve its ability to prevent and resolve major risks.
The reform of the yuan exchange-rate formation mechanism and the internationalization of the currency should be jointly promoted with the financial opening-up, he said.
“The yuan internationalization should be market-oriented,” he said. “The regulator's main job is to reduce restrictions on the cross-border use of the currency, and let it take its own course.”
Speaking at the same conference, former PBOC Governor Zhou Xiaochuan said China's high savings rate will change amid the adoption of a “dual circulation” strategy, a policy focus that aims to make the economy more self-sufficient. He also said the pandemic will curb the ability of emerging nations to repay their debt.
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