The People's Bank of China published an article saying that the RMB exchange rate, as an important price in the financial market, has been receiving attention from various circles for a long time, and discussions have increased recently. The policy position of the People's Bank of China on the RMB exchange rate is now explained as follows. China implements a managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies, and insists that the market play a decisive role in exchange rate formation. Over the past 20 years, the RMB exchange rate has fluctuated in both directions; since 2010, the RMB exchange rate has gone through multiple cycles of appreciation and depreciation. The characteristics of two-way fluctuation have become more obvious, and flexibility has increased. China's trade development is rooted in an increase in the international competitiveness of the industry. China has no need or intention to gain a competitive advantage in trade through exchange rate depreciation, and has never engaged in competitive currency depreciation. The exchange rate is affected by various factors such as economic growth, monetary policy, financial markets, geopolitics, and sudden risk events, and there is no simple linear relationship with the current account. International methods for evaluating the equilibrium level of exchange rates are not yet mature. Using individual assessment findings as the “official basis” for underestimating the RMB exchange rate is a misinterpretation and misuse of the evaluation results. Global economic imbalances are closely related to the evolution of the global division of labor, inherent contradictions in the international monetary system, and long-term high fiscal deficits and high consumption in some countries, and require all parties to work together to resolve them. Simply attributing the decline in domestic industrial competitiveness, weakening financial constraints, and complex structural problems to other countries' exchange rates is a prevarication and avoidance of responsibility for one's own adjustments. China has made positive contributions to many rounds of dynamic balance in the global economy. During the “15th Five-Year Plan” period, it will continue to promote the transformation of economic growth methods, expand domestic demand, improve the business environment, deepen a high level of opening-up to the outside world, and promote the development of the global economy in a more open, inclusive and balanced direction.
Zhitongcaijing · 2d ago
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The People's Bank of China published an article saying that the RMB exchange rate, as an important price in the financial market, has been receiving attention from various circles for a long time, and discussions have increased recently. The policy position of the People's Bank of China on the RMB exchange rate is now explained as follows. China implements a managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies, and insists that the market play a decisive role in exchange rate formation. Over the past 20 years, the RMB exchange rate has fluctuated in both directions; since 2010, the RMB exchange rate has gone through multiple cycles of appreciation and depreciation. The characteristics of two-way fluctuation have become more obvious, and flexibility has increased. China's trade development is rooted in an increase in the international competitiveness of the industry. China has no need or intention to gain a competitive advantage in trade through exchange rate depreciation, and has never engaged in competitive currency depreciation. The exchange rate is affected by various factors such as economic growth, monetary policy, financial markets, geopolitics, and sudden risk events, and there is no simple linear relationship with the current account. International methods for evaluating the equilibrium level of exchange rates are not yet mature. Using individual assessment findings as the “official basis” for underestimating the RMB exchange rate is a misinterpretation and misuse of the evaluation results. Global economic imbalances are closely related to the evolution of the global division of labor, inherent contradictions in the international monetary system, and long-term high fiscal deficits and high consumption in some countries, and require all parties to work together to resolve them. Simply attributing the decline in domestic industrial competitiveness, weakening financial constraints, and complex structural problems to other countries' exchange rates is a prevarication and avoidance of responsibility for one's own adjustments. China has made positive contributions to many rounds of dynamic balance in the global economy. During the “15th Five-Year Plan” period, it will continue to promote the transformation of economic growth methods, expand domestic demand, improve the business environment, deepen a high level of opening-up to the outside world, and promote the development of the global economy in a more open, inclusive and balanced direction.
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