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

Express News | China Foreign Exchange Trade System: Continues to Temporarily Waive Transaction Fees for Certain Directly Traded Currency Pairs

The China Foreign Exchange Trade System announced that it will continue to temporarily waive transaction fees for both order-driven and quote-driven trading in the twelve directly traded currency pairs against the renminbi—namely, the Singapore dollar, Russian ruble, Malaysian ringgit, New Zealand dollar, South African rand, Saudi riyal, UAE dirham, Polish zloty, Hungarian forint, Turkish lira, Korean won, and Thai baht—for a period of three years.

BreakingsJul 10 17:08