Will the RMB break 7? The deputy governor of the central bank gave him a reassurance-Shanghai Metals Market

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Will the RMB break 7? The deputy governor of the central bank gave him a reassurance

Translation 02:37:03PM May 20, 2019 Source:CCTV Finance and Economics

SMM News: two weeks in a row devaluation of more than 1%, off-shore, onshore RMB against the US dollar spot exchange rate has been lost 6.9 yuan, 7 yuan integer gate exposed again.

Will the RMB break 7 this time?

On May 19, Pan Gongsheng, deputy governor of the people's Bank of China and director of the State Administration of Foreign Exchange, gave an interview to the media on the current operation of China's financial and foreign exchange markets. He said: first, at present, China's economy is running smoothly on the whole, the main indicators are maintained within a reasonable range, the transformation of new and old kinetic energy is accelerated, and the macroeconomic fundamentals are good. In April, China's manufacturing purchasing managers' index (PMI) was 50.1%, continuing to be in the expansion range. Macro-policy has a large space for operation and rich policy tools. Since the beginning of this year, the prudent monetary policy has strengthened the counter-cyclical adjustment, enhanced the forward-looking and flexibility of the policy, maintained reasonable and abundant liquidity, promoted the rapid growth of social credit, and tightened the monetary and financial conditions. The financial sector has further increased its support for private and small and micro enterprises. At the end of April, M2, a broad money, rose 8.5% from a year earlier, 0.2 percentage points higher than the same period last year.

The steady operation of China's economy and finance has provided a strong fundamental support for maintaining a reasonable and stable foreign exchange market and RMB exchange rate. Since the beginning of this year, China's foreign exchange market has been operating smoothly, foreign capital inflows have increased, foreign exchange reserves have risen steadily, and the foreign exchange market is expected to be stable as a whole.

Second, in accordance with the established principles, we will unswervingly expand financial opening up, maintain the continuity and stability of the policy of financial reform and opening up, resolutely implement the planned policy of financial reform and opening up, and further promote the two-way opening of the financial market. We will deepen the reform of foreign exchange management, raise the level of liberalization and facilitation of cross-border trade and investment, earnestly safeguard the legitimate rights and interests of foreign investors, and create a more convenient and friendly investment environment for domestic and foreign investors.

Third, in recent years, we have accumulated rich experience and sufficient policy tools in dealing with fluctuations in the foreign exchange market, and will take the necessary counter-cyclical adjustment measures to strengthen macro-prudential management in the light of changes in the situation. We will crack down on violations of laws and regulations in the foreign exchange market and maintain a sound order in the foreign exchange market.

We fully have the foundation, confidence and ability to maintain the stable operation of China's foreign exchange market and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Key Words:  RMB  break 7  central bank  PMI 

Will the RMB break 7? The deputy governor of the central bank gave him a reassurance

Translation 02:37:03PM May 20, 2019 Source:CCTV Finance and Economics

SMM News: two weeks in a row devaluation of more than 1%, off-shore, onshore RMB against the US dollar spot exchange rate has been lost 6.9 yuan, 7 yuan integer gate exposed again.

Will the RMB break 7 this time?

On May 19, Pan Gongsheng, deputy governor of the people's Bank of China and director of the State Administration of Foreign Exchange, gave an interview to the media on the current operation of China's financial and foreign exchange markets. He said: first, at present, China's economy is running smoothly on the whole, the main indicators are maintained within a reasonable range, the transformation of new and old kinetic energy is accelerated, and the macroeconomic fundamentals are good. In April, China's manufacturing purchasing managers' index (PMI) was 50.1%, continuing to be in the expansion range. Macro-policy has a large space for operation and rich policy tools. Since the beginning of this year, the prudent monetary policy has strengthened the counter-cyclical adjustment, enhanced the forward-looking and flexibility of the policy, maintained reasonable and abundant liquidity, promoted the rapid growth of social credit, and tightened the monetary and financial conditions. The financial sector has further increased its support for private and small and micro enterprises. At the end of April, M2, a broad money, rose 8.5% from a year earlier, 0.2 percentage points higher than the same period last year.

The steady operation of China's economy and finance has provided a strong fundamental support for maintaining a reasonable and stable foreign exchange market and RMB exchange rate. Since the beginning of this year, China's foreign exchange market has been operating smoothly, foreign capital inflows have increased, foreign exchange reserves have risen steadily, and the foreign exchange market is expected to be stable as a whole.

Second, in accordance with the established principles, we will unswervingly expand financial opening up, maintain the continuity and stability of the policy of financial reform and opening up, resolutely implement the planned policy of financial reform and opening up, and further promote the two-way opening of the financial market. We will deepen the reform of foreign exchange management, raise the level of liberalization and facilitation of cross-border trade and investment, earnestly safeguard the legitimate rights and interests of foreign investors, and create a more convenient and friendly investment environment for domestic and foreign investors.

Third, in recent years, we have accumulated rich experience and sufficient policy tools in dealing with fluctuations in the foreign exchange market, and will take the necessary counter-cyclical adjustment measures to strengthen macro-prudential management in the light of changes in the situation. We will crack down on violations of laws and regulations in the foreign exchange market and maintain a sound order in the foreign exchange market.

We fully have the foundation, confidence and ability to maintain the stable operation of China's foreign exchange market and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Key Words:  RMB  break 7  central bank  PMI