Beijing, May 5 (ZXS) -- China's State Administration of Foreign Exchange announced on the 19th that the first meeting of the China Foreign Exchange Market Steering Committee (CFXC) in 19 was recently held in Beijing. The meeting pointed out that the breadth and depth of China's foreign exchange market are expanding day by day, it has the ability to balance independently, and the RMB exchange rate also has corrective forces and mechanisms, which can maintain basic stability at a reasonable and balanced level.
The meeting said that the recent global economic and financial situation is complex and severe, developed economies have high interest rates, high inflation, high debt coexist, monetary policy tightening effect has appeared, the United States and European banking industry risk events are continuous, pushing up market risk aversion, short-term strong support for the US dollar exchange rate, the RMB exchange rate in recent days two-way fluctuation dynamics are obvious. Recently, the spot exchange rate of RMB against the US dollar and the central exchange rate of RMB against the US dollar have successively "broken 7".
The meeting pointed out that at present, China's macroeconomic market, balance of payments and foreign exchange reserves are stable, and the expectations of financial institutions, enterprises and residents for the exchange rate are generally stable, which is a solid foundation and strong guarantee for the smooth operation of the foreign exchange market.
The meeting held that in recent years, China's foreign exchange market has developed steadily and healthily, the market-oriented reform of the exchange rate has been steadily advanced, and the two-way fluctuation and flexibility of the RMB exchange rate have been enhanced, which has effectively played the function of automatic stabilizer of the macroeconomy and the balance of payments, and created conditions for enhancing the autonomy of monetary policy. With the joint efforts of all parties, significant progress has been made in the work of exchange rate risk neutrality in the foreign exchange market, a long-term mechanism has been initially established, the concept of corporate risk neutrality has been continuously enhanced, and the risk neutral management of banks has been continuously consolidated, which is conducive to promoting the stability and long-term development of the foreign exchange market.
The meeting emphasized that in the next stage, the People's Bank of China and the State Administration of Foreign Exchange will strengthen supervision, management, monitoring and analysis, strengthen expectation guidance, and correct pro-cyclical and unilateral behavior when necessary, so as to curb speculation. The member units of the self-discipline mechanism should consciously maintain the basic stability of the foreign exchange market and resolutely curb the fluctuations of the exchange rate. Actively implement self-discipline norms, study and strengthen self-discipline management such as US dollar deposit business, improve the level of exchange rate hedging services for enterprises, reduce the cost of exchange rate hedging for small and medium-sized enterprises, and better serve the real economy. (End)