China News Service, Beijing, September 28 (Reporter Xia Bin) The People's Bank of China announced on the 28th that on September 27th, a national video conference on the self-discipline mechanism of the foreign exchange market was held. Stability, and resolutely restrain the exchange rate fluctuations.
The meeting pointed out that since the beginning of this year, the RMB exchange rate has remained basically stable at a reasonable and balanced level.
The CFETS RMB exchange rate index is basically unchanged from the end of 2021.
The exchange rate of the RMB against the US dollar has depreciated, but the depreciation rate is only half of the appreciation rate of the US dollar in the same period.
The meeting emphasized that the foreign exchange market is of great importance, and maintaining stability is the first priority.
The RMB exchange rate remains basically stable and has a solid foundation.
Compared with many economies facing the risk of stagflation, China's economy continues to recover and develop in general. The price level is basically stable, and the trade surplus is expected to remain high. With the effect of macro policies, the economic fundamentals will be more solid.
The current RMB exchange rate formation mechanism is suitable for China's national conditions and can give full play to the "two hands" of the market and the government. Historically, it has withstood the test of many rounds of external shocks. The People's Bank of China has accumulated rich experience in dealing with it and can effectively manage market expectations.
The meeting said that the current foreign exchange market is operating in a standardized and orderly manner on the whole, but there are also phenomena such as a few companies "speculating foreign exchange" and financial institutions operating in violation of regulations, and guidance and corrections should be strengthened.
It must be recognized that the point of the exchange rate is unpredictable, and two-way floating is the norm. Do not bet on the unilateral appreciation or depreciation of the RMB exchange rate.
The meeting demanded that the quoting banks should effectively maintain the authority of the central parity rate of the RMB exchange rate; the banks themselves should reasonably carry out proprietary transactions based on the principle of risk neutrality, and provide real liquidity to the market; member units should further strengthen the risk neutrality of enterprises and financial institutions. To further improve the service level of helping enterprises avoid risks; relevant departments should strengthen supervision and management, monitoring and analysis, strengthen anticipation management, and curb speculation.
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