The central bank clarifies its policy stance on the RMB exchange rate. China's exchange rate regime features three key characteristics: the central bank does not set a specific target level for the exchange rate, does not intervene in its long-term trend, and maintains exchange rate flexibility with two-way fluctuations.

Recently, international public opinion has focused extensively on the renminbi exchange rate, with some voices linking it to global trade imbalances. On October 8, the People's Bank of China issued a policy statement on the renminbi exchange rate, emphasizing that China operates a managed floating exchange-rate regime based on market supply and demand, with reference to a basket of currencies, and that the market must continue to play the decisive role in determining the exchange rate. There is no simple linear relationship between the exchange rate and the current account. Global economic imbalances are closely linked to the evolution of the global division of labor, inherent contradictions within the international monetary system, and the persistent high fiscal deficits and excessive consumption in certain countries, all of which require concerted efforts by all parties to address. "To keep domestic…

Securities TimesOct 9 09:06

A 40 Trillion Debt Overhang! The U.S. Treasury Storm Sweeps the Globe: Can RMB Assets Serve as a Safe Haven? Understanding the Three Underlying Logics

Although the U.S. Treasury suddenly announced this Wednesday an expansion of long-term Treasury buybacks in an attempt to suppress long-term yields through a "borrow short, repay long" strategy, the effect lasted only one day. The yield on the U.S. 30-year Treasury bond rose again to 5.249%, approaching its previous high.

Securities TimesAug 23 15:18

Trump's influence on oil prices and rising expectations of uncontrollable inflation have made global central banks hesitant to take action.

The second wave of energy shocks within five years is imminent, with the world's five major central banks expected to remain on hold this week. Trump's social media posts continue to stir the oil market, while conflicts in the Middle East make inflation trends difficult to predict. The Federal Reserve remains vigilant against the risk of high inflation becoming "entrenched" in the economy, whereas the European Central Bank feels more comfortable adopting a wait-and-see stance. Expectations for interest rate hikes by the Bank of Japan and the Bank of England have abruptly cooled. The painful lesson from misjudging inflation in 2022 is still fresh in the minds of central banks, leading them to prefer staying cautious rather than making hasty moves amid uncertainty.

WallStreetCNApr 27 14:40

BOE's Chief Economist Skeptical Of "Wait-and-See" Response to Inflation Threats

Policymakers might be wrong to wait too long to judge the impact of the conflict in the Middle East on U.K. inflation, the Bank of England's chief economist said Friday.

WSJApr 17 20:44

BOE's Greene Sees Wait For Hard Evidence Of Second-Round Effects

The Bank of England may have to raise its key interest rate if there is evidence that higher energy costs are feeding through to increased wages and prices of other goods and services, rate setter Megan Greene said Tuesday.

WSJApr 14 22:47