China News Service, Beijing, May 9 (Reporter Xia Bin) The People's Bank of China issued a report on the implementation of China's monetary policy in the first quarter of 2022 on the 9th. Exchange rate system, strengthen macro-prudential management of cross-border capital flows, strengthen expectation management, guide market players to establish the concept of "risk neutrality", maintain the normal operation of the foreign exchange market, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
The report pointed out that since 2022, cross-border capital flows and foreign exchange supply and demand have been basically balanced, and market expectations are generally stable.
The market plays a decisive role in the formation of the RMB exchange rate. The RMB exchange rate fluctuates in both directions and is more flexible, and it has played the role of an automatic stabilizer for the macro economy and the balance of payments.
In the first quarter, the RMB exchange rate appreciated against a basket of currencies based on market supply and demand.
The report stated that it is necessary to improve enterprise exchange rate risk management services, guide financial institutions to actively provide exchange rate hedging services for small and medium-sized enterprises based on the principle of actual demand and the principle of risk neutrality, reduce the cost of hedging and value preservation for enterprises, strengthen their own foreign exchange business risk management, and maintain foreign exchange. The market developed steadily and healthily.
The report also proposes to continue and prudently promote the internationalization of the renminbi, further expand the use of the renminbi in cross-border trade and investment, deepen foreign currency cooperation, and develop the offshore renminbi market.
Carry out high-level opening-up pilot projects for cross-border trade and investment, improve the degree of liberalization and facilitation of cross-border trade and investment, and steadily promote the convertibility of RMB capital account.
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