Early Reading | Vice Governor of the Central Bank: Resolutely Preventing Exchange Rate Fluctuations in the Market | Exchange Rate | Vice Governor

Good morning! Watch the news "early reading" is coming! Saturday, July 15, 2023, lunar may 28, cloudy to overcast in Shanghai, with showers or thunderstorms in some areas from afternoon to night, 26~36 ℃

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Vice Governor of the Central Bank: Resolutely prevent major fluctuations in exchange rates

※ the recent fluctuations in the RMB exchange rate, the market is very concerned about exchange rate changes and future trends. Liu Guoqiang, deputy governor of the People's Bank of China, said on the 14th that the People's Bank of China will aim to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, with expectation management as the core, comprehensively implement policies and stabilize expectations, and when necessary, the market will be pro-cyclical and unilateral. Correct behavior and resolutely prevent exchange rate fluctuations.

Recently, the Chinese yuan has once again "broken 7" against the US dollar. "Although the RMB exchange rate has depreciated, it has not deviated from the fundamentals." Liu Guoqiang stated at the press conference of the State Council Information Office on the same day that the People's Bank of China has taken comprehensive measures to manage expectations. Currently, the foreign exchange market is operating steadily, and the foreign exchange settlement and sales behavior of financial institutions, enterprises, and residents is rational and orderly. Market expectations are basically stable. Recently, the exchange rate of the Chinese yuan against the US dollar has begun to show a significant rebound.

Liu Guoqiang believes that from the macro economic perspective, the fundamentals of China's economy have not changed in the long run. From the perspective of the overall international balance of payments, China's current account surplus remains at a moderate level of around 2%, and cross-border capital flows are basically balanced. Recently, foreign funds investing in domestic bonds have continued to maintain a net inflow trend. From the perspective of the reserve market, China has sufficient foreign exchange reserves and its balance still ranks first in the world. With the support of these three major markets, under the market-oriented exchange rate formation mechanism, the RMB exchange rate will not experience a "unilateral market" and will still maintain two-way fluctuations and dynamic equilibrium.

The exchange rate is generally determined by the market, and at the same time, it is necessary to better leverage the two hands of the market and the government to avoid large fluctuations in the exchange rate.

"We have confidence, conditions, and the ability to cope with various shocks and maintain the stable operation of the foreign exchange market," Liu Guoqiang said. In recent years, the People's Bank of China has accumulated rich experience in dealing with multiple rounds of external shocks, and also has sufficient policy tool reserves. We will use them reasonably and make timely decisions according to the situation.

§Shencheng

● Continuous high temperature "roasted" Shencheng. For the safe and orderly operation of this mega city, the vast number of front-line workers in the city stick to their posts, sweat and work hard. Over the past few days, Chen Jining, secretary of the municipal party committee, and Gong Zheng, deputy secretary of the municipal party committee and mayor, have gone deep into the grass-roots front line to express cordial condolences and heartfelt thanks to the broad masses of workers fighting in the high temperature. Chen Jining said that the city's operation and management should not be relaxed or careless at all times. It is necessary to firmly establish bottom-line thinking and extreme thinking, refine and implement various measures during the summer, timely study, judge and analyze, do a good job in overall scheduling, and strengthen on-duty duty, so as to ensure the safety and order of the city and the peace of mind of the masses. It is necessary to care for front-line workers attentively, all heatstroke prevention and cooling measures should be guaranteed and implemented in place, and every effort should be made to create a good working environment.

The reporter learned from China Railway Shanghai Bureau Group Co., Ltd. that at present, railway transportation has entered the busy stage of summer transportation. The Shanghai Bureau Group expects to send more than 0.15 billion passengers during the summer transportation period from July 1 to August 31, with an average of more than 2.4 million passengers per day, a significant increase over the same period in 2019. In the first half of this year, the Yangtze River Delta Railway sent more than 0.37 billion passengers, with an average of more than 2 million passengers per day.

The reporter learned from the Municipal Bureau of human resources and social security that from January 2023, the city will increase the basic pension for the retirees who have gone through the retirement procedures and received the basic pension on a monthly basis before the end of 2022. Retirees from enterprises, government agencies and institutions adopt a unified combination of quota adjustment, linked adjustment and appropriate tilt adjustment. The specific methods are as follows: First, each person will increase 61 yuan per month; Second, according to the number of years of payment, 1 yuan will be added every month for every full year. If the increase is less than 15 yuan, it will be added to 15 yuan. Third, based on the basic pension I received monthly in December 2022, an increase of 1.8 per month; fourth, for those who have reached the age of 70, 75 and 80 before the end of 2022, an additional 25 yuan, 35 yuan and 45 yuan per person per month will be added.

§domestic

●The reporter learned from the Ministry of Commerce on the 14th that the Ministry of Commerce, together with the National Development and Reform Commission and the Ministry of Finance, carried out the second batch of central reserve pork procurement and storage this year, and completed the procurement and storage of 20000 tons.

●The reporter learned from China Railway Construction Co., Ltd. that on the 14th, the large-diameter double-shield earth pressure combined shield machine independently developed by my country-"Tiebing Guanghua No. 6" was in the No. 2 shield well of the Guanghua Intercity Railway. Start smoothly.

●The reporter learned from the Inner Mongolia Desert Green Water and Green Mountains and Jinshan Yinshan Practice Model Seminar on the 14th that in the past 10 years, Inner Mongolia has accumulated 0.138 billion mu of sand prevention and control, further building an important ecological security barrier in northern my country.

●The reporter learned from the Emergency Management Bureau of Wanzhou District, Chongqing that the local area has encountered a new round of heavy rainfall since the 13th, causing more than 16000 people to be affected. The local flood control level II emergency response has been launched, emergency relocation of people to avoid danger.

§International

●Thailand's new parliament held its first joint meeting of the upper and lower houses on the 13th. Because the only nominated prime minister candidate and the leader of the Yuanjin Party, Pita Lindjalunla, failed to win the support of more than half of the members, the parliament failed to elect a new prime minister.

●Russian President Putin delivered a speech at the first "Computing and Communications · Quantum World" Future Technology Forum in Moscow on the 13th, saying that Russia will not succumb to the Western technological blockade and "will only move forward in its own way".

As of July 1, 2023, Russia's total foreign debt was $347.7 billion, the lowest level since 2006, according to a report released on the website of the Central Bank of Russia on the 13th.

● The engine of Japan's new rocket "Epsilon S" exploded and caught fire during a test on the 14th, causing no casualties.

●Nigerian President Tinubu announced on the 13th that Nigeria has entered a state of food security emergency and deployed measures to deal with the impact of rising food prices on people's livelihood.

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