China News Service, July 22. The State Council Information Office held a press conference on foreign exchange receipts and payments in the first half of the year. Wang Chunying, deputy director of the State Administration of Foreign Exchange and spokesperson, said at the meeting that in the second half of the year, the RMB exchange rate will remain at a reasonable and balanced level. The level remains basically stable.
Wang Chunying said that there are several supporting factors for this conclusion:
First, China's economy has stabilized and recovered, major economic indicators have improved, and the industrial chain and supply chain have remained stable, which will continue to play a fundamental role in supporting the RMB exchange rate.
Second, China's foreign trade and foreign investment are resilient, and funds from the real economy, such as trade and investment, will still be the base for inflows, which will help maintain a basic balance between supply and demand in the foreign exchange market.
Third, the exchange rate expectations of market players are basically stable, and the rational trading model of "purchasing foreign exchange on dips and settlement on highs" is maintained.
In addition, Wang Chunying also said that China's external asset-liability structure has been continuously optimized, and the scale of foreign exchange reserves has remained generally stable, ranking first in the world.
Of course, the trend of the RMB will be affected by multiple factors such as foreign exchange supply and demand and the international financial market. It may also fluctuate to a certain extent in the short term. It may rise or fall. The RMB exchange rate will remain flexible and float in both directions. The equilibrium level remains basically stable.
(Zhongxin Finance)