National Foreign Exchange Market Self-Regulatory Mechanism Video Conference: The RMB exchange rate remains basically stable and has a solid foundation
2022-09-29 09:04:33Source: Xinhua News Agency
The reporter learned from the People’s Bank of China on September 28 that the video conference on the national foreign exchange market self-discipline mechanism held on September 27 emphasized that the foreign exchange market is of great importance, maintaining stability is the first priority, and the RMB exchange rate has a solid foundation to maintain a basic stability. Member units of the self-discipline mechanism must consciously maintain the basic stability of the foreign exchange market and resolutely curb 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 China Foreign Exchange Trade System (CFETS) RMB exchange rate index was basically unchanged from the end of 2021. The exchange rate of 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 compared with many economies facing the risk of stagflation, my country’s economy continues to recover and develop, 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 multiple rounds of external shocks. The People’s Bank of China has accumulated rich experience in dealing with it and can effectively manage market expectations. (Reporter Wu Yu)