This newspaper, Beijing, April 22 (Reporter Ge Mengchao) The State Council Information Office held a press conference on the afternoon of the 22nd to introduce the foreign exchange receipts and payments data for the first quarter. Wang Chunying, deputy director of the State Administration of Foreign Exchange and spokesperson, said that in the first quarter, my country’s foreign exchange market remained stable, the exchange rate of RMB against the US dollar fluctuated in both directions and was basically stable, and cross-border capital flows were generally stable and relatively balanced.
Data show that in the first quarter, the foreign exchange settlement and sales of banks recorded a surplus of US$58.7 billion, and the foreign-related receipts and payments of banks on behalf of customers recorded a surplus of US$62.2 billion in the first quarter. “Under the complex and severe external environment, my country’s foreign exchange market has a stable start, which is mainly reflected in three characteristics: the stable RMB exchange rate, the overall stable cross-border capital flow, and the basically stable foreign exchange market expectations.” Wang Chunying said, first of all, the two-way RMB exchange rate Volatility intensified and overall performance was solid. Second, cross-border capital flows were balanced and orderly, with a slight net inflow overall. Third, transactions in the foreign exchange market were rational and orderly, and exchange rate expectations were basically stable.
Recently, the Fed’s monetary policy tightening has accelerated, and the domestic and foreign interest rate differentials have changed. In this regard, Wang Chunying said that in recent years, the resilience of my country’s foreign exchange market has been continuously enhanced, and it has the basis and conditions to adapt to the current round of the Fed’s policy adjustment. “The domestic economic operation has generally remained within a reasonable range, and the economy is relatively resilient. The basic surplus in the balance of payments, such as the current account and direct investment, will still maintain a certain scale, and will play a role in stabilizing cross-border capital flows. The exchange rate plays a role in regulating the balance of payments. The automatic stabilizer functions, and the maturity of the foreign exchange market continues to improve.” Wang Chunying said.
In terms of the RMB exchange rate, Wang Chunying said that in the future, the RMB exchange rate will fluctuate in both directions and remain basically stable at a reasonable and balanced level. my country’s economy is relatively resilient, the long-term positive development trend has not changed, the balance of payments structure is stable, the current account maintains a reasonable size surplus, and RMB assets have long-term investment value. These factors will provide fundamental support for the basic stability of the RMB exchange rate.
On April 18, the People’s Bank of China and the State Administration of Foreign Exchange issued the “Notice on Effective Financial Services for Epidemic Prevention and Control and Economic and Social Development”, proposing 23 policy measures to strengthen financial services and increase support for the real economy. “Focusing on small and medium-sized enterprises to optimize foreign exchange business handling and services.” Wang Chunying said, first, improve enterprise exchange rate risk management services and reduce the cost of hedging and maintaining value for enterprises. Financial institutions are required to respond to foreign trade enterprises and other market players’ exchange rate hedging needs in a timely manner, optimize foreign exchange derivatives business management and services, and improve enterprises’ ability to deal with exchange rate fluctuations. The second is to optimize the cross-border business process and provide enterprises with more efficient and convenient cross-border fund settlement services. To further improve the level of digitalization of cross-border business, banks can provide cross-border settlement services through online and paperless methods such as reviewing electronic documents.
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Responsible editor: Yin Yue