China News Agency, Beijing, January 13 (Reporter Xia Bin) Xuan Changneng, deputy governor of the People's Bank of China, said at a press conference held by the State Council Information Office in Beijing on the 13th that under the combined effects of various forces, China's RMB exchange rate will Overall running smoothly.
After years of financial reform and opening up, the depth and breadth of China's foreign exchange market have been greatly enhanced, the flexibility of the RMB exchange rate has increased, market expectations have been stable, cross-border capital flows have been orderly, and the balance of payments has been independently balanced. The RMB exchange rate will continue to maintain a basic balance at a reasonable and balanced level. Stablize.
Talking about the trend of the RMB exchange rate, Xuan Changneng said that since mid-November 2022, as domestic economic stabilization policy measures have taken effect, optimized epidemic prevention and control measures and financial support for real estate policies have been introduced one after another. In addition, the market expects the Fed to slow down interest rate hikes. The dollar index fell back from its high level, and the RMB exchange rate against the US dollar gradually turned to an appreciation trend. On December 5, the spot exchange rate rose back to within 7.0.
"The current and future trend of the RMB exchange rate will be affected by multiple factors such as the domestic and foreign economic and financial situation, the balance of payments, and market risk appetite. Short-term uncertainty is inevitable." Xuan Changneng said that in general, maintaining basic stability has solid Foundation.
Recently, China's economy has generally continued to recover, and the epidemic prevention and control has been dynamically optimized. In the context of high global inflation, China's prices have remained basically stable. Considering the decline in the economic prosperity index of major economies, the growth rate of China's trade surplus may have declined.
Regarding the Fed's interest rate hike and spillover effects in 2023, Xuan Changneng said that the independence and stability of China's financial system have increased, and the RMB exchange rate is expected to be stable. spillover effect.
In general, the monetary policy adjustments of developed economies have limited impact on China, and may have a greater impact on other relatively small emerging market economies.
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