Deputy Governor of the People's Bank of China: Two-way fluctuations in the RMB exchange rate will become the norm in the future

  China News Agency, Beijing, May 23 (Reporter Xia Bin) Liu Guoqiang, deputy governor of the People's Bank of China, said in response to reporters' questions on the RMB exchange rate on the 23rd that at present, China's foreign exchange market is autonomously balanced, the RMB exchange rate is determined by the market, and the exchange rate is expected to be stable.

The future trend of the RMB exchange rate will continue to depend on market supply and demand and changes in the international financial market, and two-way fluctuations will become the norm.

  Liu Guoqiang said that since the beginning of this year, the RMB exchange rate has risen and depreciated, floating in both directions, and has remained basically stable at a reasonable and balanced level.

  After experiencing a brief depreciation at the beginning of this year, the renminbi has restarted the trend of volatile appreciation.

As of May 21, the central parity of the RMB against the US dollar was reported at 6.4300, an increase of 164 basis points from the previous trading day.

  Liu Guoqiang pointed out that the People's Bank of China has perfected a managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies. This system is suitable for China's exchange rate system arrangements at present and for a period of time in the future.

The People's Bank of China will focus on expected guidance, play the role of exchange rate adjustment macroeconomic and automatic balance of payments stabilizer, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

  The 51st meeting of the Financial Stability and Development Committee of the State Council of China recently called for further promoting the reform of interest rate and exchange rate marketization and maintaining the basic stability of the RMB exchange rate at a reasonable and equilibrium level.

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