Central Bank and SAFE: Short-term fluctuation of RMB exchange rate is determined by market

category:Finance
 Central Bank and SAFE: Short-term fluctuation of RMB exchange rate is determined by market


In May, the U.S. Treasury Department reported that Chinas current account surplus accounted for less than 0.4% of GDP, while Chinas 12-month net foreign exchange purchases accounted for only - 0.2% of GDP. These two indicators show that there is no inappropriate exchange rate behavior.

Economic Fundamentals Determine Equilibrium Exchange Rate Level. Good Chinese Economic Fundamentals are the Foundation of RMB Exchange Rate Stability

Market participants have increased their confidence in Chinas economy, and the operating conditions of micro participants have improved continuously. The utilization rate of industrial capacity has reached 76.4%, reaching a historic high level. The Peoples Bank of Chinas survey shows that the proportion of residents choosing more consumption is increasing.

Overseas institutions are willing to invest in RMB assets. At the end of 2014, the value of Chinese bonds and stocks held by foreign investors was more than $2000 billion, and reached more than $550 billion at the end of June this year. All these provide a solid foundation for the stability of RMB exchange rate.

Foreign exchange management policy will continue to maintain the stability of enterprises and individualsdemand for foreign exchange without affecting foreign exchange management policy will maintain continuity and stability, and ensure the normal compliance of enterprises and individuals demand for foreign exchange. We will continue to increase the liberalization and facilitation of cross-border trade and investment. We will continue to steadily promote capital account openness. Source: Responsible Editor of the Peoples Bank of China: Wang Xiaowu_NF

Foreign Exchange Management Policy will continue to stabilize the demand for foreign exchange used by enterprises and individuals.

Foreign exchange management policy will maintain continuity and stability, and ensure the normal compliance of enterprises and individuals in the demand for foreign exchange.

We will continue to increase the liberalization and facilitation of cross-border trade and investment.

We will continue to steadily promote capital account openness.