China State Administration of Foreign Exchange: Maintain high-frequency monitoring of cross-border capital flows

　　(Focus on Boao) China State Administration of Foreign Exchange: Maintain high-frequency monitoring of cross-border capital flows

　　China News Agency, Boao, April 19 (Liu Liang) Xuan Changneng, deputy director of the State Administration of Foreign Exchange of China, said on the 19th that China’s current economic fundamentals are sound, which provides fundamental support for the stability of the RMB exchange rate.

In the face of the instability and uncertainty of the global economy, the bureau will adhere to the bottom line thinking, continue to pay attention to the development and changes of the external environment, and monitor cross-border capital flows at a high frequency.

　　Xuan Changneng made the above remarks at a sub-forum of the Boao Forum for Asia 2021 annual meeting.

　　He pointed out that since the beginning of this year, the prevention and control of the new crown pneumonia epidemic in major economies around the world, especially vaccination, has made progress, and the prospects for economic recovery have improved.

In this context, China's international balance of payments and foreign exchange markets are showing a stable exchange rate and a balanced transaction balance.

　　Xuan Changneng said that, first of all, the RMB exchange rate remained basically stable amidst narrow two-way fluctuations.

Compared with major international currencies, the value of the renminbi has been relatively stable since the beginning of this year, showing strong resilience.

Second, transactions in the foreign exchange market remain rational.

On the one hand, the rational trading of market entities to settle foreign exchanges on rallies and purchase foreign exchanges on lows is more obvious.

On the other hand, from the perspective of foreign trade trends and import and export enterprises, the market also tends to be more rational.

　　He said that the current stability of China's foreign exchange situation is the result of a combination of internal and external factors.

From an external point of view, the US economic recovery has accelerated, super-loose stimulus policies have been superimposed, and market inflation expectations have increased, which in turn promoted the growth of the US dollar index.

Therefore, the external factors driving the appreciation of the renminbi in the second half of last year have weakened.

From the perspective of the domestic economy, China's economic fundamentals also provide fundamental support for the stability of the RMB exchange rate.

　　However, the global economy is still facing various instability and uncertain factors. Xuan Changneng believes that China's foreign exchange market is still hard to say easy.

In the next step, the bureau will adhere to bottom-line thinking, maintain high-frequency monitoring of cross-border capital flows, improve the two-in-one management framework of "macro prudence + micro supervision" in the foreign exchange market, coordinate the development of opening up and security, and ensure the country's economic and financial development.

(Finish)