IMF’s Gopinath: Calibrating China's COVID strategy critical to sustaining recovery

“Calibrating China's zero-COVID strategy to mitigate the country's economic impact will be critical to sustain and balance the recovery,” said Gita Gopinath, the first Deputy Managing Director of the International Monetary Fund (IMF), at the Caixin Summit on Thursday.

IMF’s Gopinath also added, via video call, that For China, inflation and weakening growth allow for greater support for vulnerable households, which together with strengthening social safety nets would promote consumption.

Earlier in the day, the People's Bank of China (PBOC) released its third quarter (Q3) Monetary Policy Report (MPR). “Will increase the intensity of prudent monetary policy instead of issuing excessive currency, strengthen cross-cycle adjustment to balance short-term and long-term needs, economic growth and price stability, as well as the internal and external environment,” mentioned the PBOC’s MPR.

Also read: PBOC: Will monitor and make appropriate responses to keep price level stable

USDCNH prints three-day uptrend

The news adds strength to the US Dollar’s latest rebound and weighs on the Chinese Yuan. As a result, the USDCNH pair picks up bids to extend the week-start rebound from the monthly low.

Also read: USDCNH leans bullish above 7.1300 on upbeat options market signals