[Explanation] On April 23, the State Council Information Office held a press conference to introduce China's foreign exchange receipts and payments in the first quarter of 2021.
Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said that since the beginning of this year, the international environment has undergone major changes. The yield of U.S. bonds has risen and the dollar exchange rate index has rebounded. International capital flows have been affected to a certain extent.
In such an external environment, China's foreign exchange market has shown consistent characteristics of resilience, rationality and balance.
[Concurrent] Wang Chunying, Deputy Director and Spokesperson of the State Administration of Foreign Exchange
The RMB exchange rate is generally stable, showing narrow two-way fluctuations.
Everyone still has the impression that on the first day of the market opening at the beginning of this year, the RMB exchange rate jumped by 1.2% to 6.46.
After that, it entered a relatively stable situation, with narrow fluctuations between 6.46-6.55.
Compared with major international currencies, this range is relatively stable, showing strong resilience.
Transactions in the foreign exchange market are rational and orderly, and exchange rate expectations are relatively stable.
Market entities still maintain a rational trading model of foreign exchange settlement at high prices and foreign exchange purchases at low prices.
The balance of payments is basically balanced, and cross-border two-way investment is also generally balanced.
[Explanation] Wang Chunying said that in the medium and long term, the foundation for China's foreign exchange market to maintain a stable operation in the future is still solid.
[Concurrent] Wang Chunying, Deputy Director and Spokesperson of the State Administration of Foreign Exchange
This year we put more emphasis on the new development pattern, which is helpful to maintain the balance of international payments. We are actively promoting the coordinated development of domestic and external demand, exports and imports, the introduction of foreign capital and foreign investment. Current accounts, cross-border investment and financing are all expected In the interval of reasonable equilibrium.
So we think the new development concept will help maintain the stability of the RMB exchange rate.
The stable development of the economy will boost market confidence and create a stable currency.
We will continue to promote opening up steadily, which is helpful to the balanced flow of cross-border capital.
The flexible RMB exchange rate will continue to play its role as an automatic "stabilizer" for adjusting the balance of payments, and will help the foreign exchange market to adjust and balance independently.
[Explanation] In response to the current US economic stabilization and rising inflation expectations, the market is worried that the Fed will end its loose monetary policy early.
Wang Chunying said that China has the conditions to maintain balance of international payments and foreign exchange markets.
[Concurrent] Wang Chunying, Deputy Director and Spokesperson of the State Administration of Foreign Exchange
From the perspective of the domestic foreign exchange market, under the circumstances of this loose (monetary policy), our country has not accumulated excessively high external debts, and our risk mitigation capabilities are constantly improving.
For us, we still have the conditions to keep the balance of payments and the foreign exchange market in equilibrium.
Dong Zeyu reports from Beijing
Editor in charge: [Ji Xiang]