State Administration of Foreign Exchange deploys key tasks this year

  Prevent the risk of abnormal cross-border capital flows

  Beijing, January 6th (Reporter Yao Jin) The State Administration of Foreign Exchange recently held the 2021 National Foreign Exchange Management Work Video Conference and stated that in 2020, facing the severe impact of the new crown pneumonia epidemic and the complicated international situation, the foreign exchange management department is determined. Implementing the decisions and deployments of the Party Central Committee and the State Council, focusing on serving the real economy in combination with epidemic prevention and control, advancing reform and opening up, and preventing and mitigating risks, and spared no effort to do a good job in the "six stability" and "six guarantees", maintaining the stable operation of the foreign exchange market and the balance of payments Basically balanced.

  The meeting emphasized that 2021 is the first year of the "14th Five-Year Plan".

The foreign exchange management department must continue to do a good job in the "six stability" work, implement the "six guarantees" task, better coordinate development and safety, strengthen the awareness of opportunities and risks, and deepen the reform and opening up of the foreign exchange field to stimulate new development vitality, reform and improve and new development Under the higher-level open economy, the foreign exchange management system and mechanism that are compatible with the new system of open economy will strive to improve the level of trade and investment liberalization and facilitation at the micro level, and effectively maintain the national economic and financial security at the macro level.

  The meeting arranged key tasks for foreign exchange management in 2021. One is to prevent the risk of abnormal cross-border capital flows. Strengthen the monitoring and evaluation of the foreign exchange situation, pay close attention to the impact of external shocks such as the epidemic, guide financial institutions and enterprises to adhere to the risk-neutral principle, combat foreign exchange speculation, strengthen market expectations management and macro-prudential management, and avoid disorderly fluctuations in the foreign exchange market. The second is to deepen reform and opening up in the foreign exchange sector. Focusing on the two-way opening of the financial market, the opening of capital projects will be promoted in a steady and orderly manner. Improve the management of domestic stocks and bonds issued by overseas institutions, promote cross-border investment pilots for private equity investment funds, reform foreign debt registration management, and facilitate cross-border investment and financing. Expansion of pilot projects for facilitation of foreign exchange receipts and payments in trade, and promote the development of new trade formats. Build an open and diversified foreign exchange market with sound functions, and support financial institutions to launch more foreign exchange derivatives that meet market needs. The third is to improve the two-in-one management framework of “macro prudence + micro regulation” in the foreign exchange market. Improve the management of cross-border capital flows with strengthening macro-prudential as the core, and improve the micro-supervision of the foreign exchange market with the transformation of supervision methods as the core. Improve the construction of a classified management credit system guided by risk assessment. Strengthen the capacity building of off-site supervision. Severely crack down on illegal activities in the foreign exchange sector such as underground banks and cross-border gambling with a "zero tolerance" attitude, and maintain the healthy order of the foreign exchange market. The fourth is to improve the management of foreign exchange reserves with Chinese characteristics. Adhere to the principle of marketization, make a forward-looking strategic allocation, and dynamically optimize the investment portfolio. Ensure the safety, flow, maintenance and appreciation of foreign exchange reserve assets. The fifth is to consolidate the basic work of foreign exchange management. In-depth study of foreign exchange management reform ideas during the "14th Five-Year Plan" period, promote the construction of "digital external control" and "safe external control", improve the balance of payments statistics system, and do a good job in normalized epidemic prevention and control.