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SAFE News
  • Index number:
    000014453-2019-0033
  • Dispatch date:
    2019-05-19
  • Publish organization:
    State Administration of Foreign Exchange
  • Exchange Reference number:
  • Name:
    Pan Gongsheng: Steady Economic and Financial Operation Provides Strong Support for the Foreign Exchange Market and RMB Exchange Rate to Maintain Reasonable and Stable
Pan Gongsheng: Steady Economic and Financial Operation Provides Strong Support for the Foreign Exchange Market and RMB Exchange Rate to Maintain Reasonable and Stable


On May 19, Pan Gongsheng, Deputy Governor of the People’s Bank of China (the PBOC) and Administrator of the State Administration of Foreign Exchange (SAFE) received an interview by a reporter from the Financial News regarding the current operation of China’s financial and foreign exchange markets.

Financial News: What would you say about the current operation of China’s financial and foreign exchange markets?

Pan Gongsheng: First, China’s economy is running smoothly on the whole, the main indicators remain within a reasonable range, the shift from old drivers to new drivers is accelerating and the macroeconomic fundamentals are sound. In April, China’s manufacturing purchasing managers’ index (PMI) was 50.1%, continuing to be in the expansion range. The macro policies still have considerable operation space and there is a rich selection of policy instruments. Since the beginning of this year, counter-cyclical adjustment has been strengthened under the prudent monetary policy, which makes the policy more forward-looking and flexible, and maintains reasonable liquidity. Such efforts have promoted the rapid growth of social credit and resulted in moderately tight monetary and financial conditions. Meanwhile, financial sectors have stepped up their support for private enterprises as well as micro and small enterprises. At the end of April, the broad money supply (M2) increased by 8.5% year on year, 0.2 percentage point higher than the same period last year.

China’s steady economic and financial operation lays a solid foundation for a reasonable and stable development pattern of the foreign exchange market and RMB exchange rate. Since the beginning of this year, China’s foreign exchange market has been running smoothly. The inflow of foreign capital has increased, the foreign exchange reserves have risen steadily, and the expectation of foreign exchange market has been stable on the whole.

Second, we will, in accordance with the established guidelines, unswervingly promote the financial opening-up, maintain the continuity and stability of the financial reform and opening-up policy, resolutely implement the financial reform and opening-up policy which has been deployed, further facilitate the two-way opening-up of the financial market, deepen the foreign exchange administration reform, improve the liberalization and facilitation level for cross-border trade and investment, earnestly protect the legitimate rights and interests of foreign investors, and create more convenient and friendly investment environment for domestic and foreign investors.

Third, in recent years, we have accumulated rich experience and sufficient policy instruments in dealing with fluctuations in the foreign exchange market, and adopted necessary counter-cyclical adjustment measures to strengthen macro-prudential management in light of the changing situations. We have cracked down upon irregularities on the foreign exchange market, to maintain the good order of the foreign exchange market.

We have the solid foundation, confidence and capabilities to maintain the steady operation of China’s foreign exchange market and keep the RMB exchange rate basically stable at a rational and balanced level.

The English translation may only be used as a reference. In case a different interpretation of the translated information contained in this website arises, the original Chinese shall prevail.

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