RBA's Debelle: Welcomes increased role of yuan in global markets

Guy Debelle, Assistant Governor (Financial Markets) at the RBA, is speaking in Beijing at the RMB FX Forum, noting that he welcomes increased role of yuan in global markets.

Headlines

One clear demonstration of this is in the reduced volatility of domestic interest rates and the increased volatility of the Australian dollar

The increased volatility of the Australian dollar is generally regarded as a positive development as a mechanism of adjusting to shocks and not a threat

The existence of deep hedging markets further ensures that the benefits of a flexible exchange rate policy outweigh the costs