China News Service, Beijing, November 18 (Reporter Xia Bin) The Central Bank of China announced on the 18th that the national foreign exchange market self-discipline mechanism recently held its eighth working meeting and emphasized that the current global economic and financial situation is complex and changeable. Central banks of major economies Monetary policy has begun to adjust, and there are many factors that affect the exchange rate. In the future, the RMB exchange rate may appreciate or depreciate. Two-way fluctuations are the norm, reasonable equilibrium is the goal, and the degree of deviation is proportional to the correction force.
The meeting pointed out that since the China Foreign Exchange Market Steering Committee deployed in December 2020 to promote risk-neutral work, the national foreign exchange market self-discipline mechanism has promoted banks to strengthen the promotion of the concept of exchange rate risk neutrality, and effectively helped companies improve exchange rate risk management.
Through the joint efforts of all parties, market players have become more rational in their understanding of exchange rate fluctuations, and their awareness of risk aversion has continued to increase. The scale of enterprises using foreign exchange derivatives to manage exchange rate risks and the hedging ratio have increased significantly.
The meeting mentioned that market entities such as enterprises and financial institutions can better respond to external shocks only if they adhere to the risk-neutral concept.
Enterprises should deeply understand and understand the neutral connotation of exchange rate risk, and adhere to the exchange rate risk management principle of "preserving value" rather than "increasing value".
At the same time, financial institutions should actively provide exchange rate hedging services for small, medium and micro enterprises to reduce their exchange rate hedging costs.
Intermediaries adopt measures such as preferential treatment fees for transactions in the inter-bank foreign exchange market to support financial institutions.
Financial institutions should strengthen their own foreign exchange business risk management, neither can help enterprises "speculate foreign exchange", nor should they "speculate foreign exchange" themselves, consolidate the institutional foundation, and jointly build a professional and standardized foreign exchange market.
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