Original title: Financial regulatory authorities intensively voiced exchange rate
"2019 Tsinghua Wudaokou Global Financial Forum" was held in Beijing from 25th to 26th. In the speech prepared by Xiao Yuan, the chief risk officer of the China Insurance Regulatory Commission and the director of the office, Guo Shuqing, the party secretary of the central bank and the chairman of the China Insurance Regulatory Commission, once again issued a stable exchange rate. This is the third time that the leader of the financial supervision department expressed his views on the exchange rate after the central bank’s deputy governor Pan Gongsheng and the deputy governor of the central bank Liu Guoqiang. Guo Shuqing said that although the foreign exchange market has fluctuated recently, Chinese companies and residents have not experienced any panic. The short-term fluctuation of the RMB exchange rate is normal. In the long run, China’s economic fundamentals determine that the RMB cannot continue to depreciate, and speculative shorting of the RMB will inevitably suffer huge losses.
Guo Shuqing said in a written speech that in the past decade or so, all the devaluation of the renminbi has been largely due to external reasons, not to our intention. "It has always been that developed countries continue to demand that the renminbi increase the flexibility of the exchange rate. However, when the marketization of the renminbi exchange rate price increases and the volatility increases, some countries show the attitude of Ye Gonghao, and blame us for unwarranted suspicion. The practice is obviously very ridiculous." Guo Shuqing pointed out.
From past experience, exchange rate depreciation and capital outflows often complement each other. Up to now, the depreciation of the RMB exchange rate has not triggered large-scale capital outflows. The cross-border capital flow situation in China is generally stable, and the supply and demand in the foreign exchange market are relatively balanced. The foreign exchange bureau announced the April bank settlement and sales data shows that the bank's settlement and sales deficit was 73.7 billion yuan, of which the bank's settlement of foreign exchange settlement and sales was 53.1 billion yuan.
In this regard, Guo Shuqing said that although the foreign exchange market has fluctuated recently, there has not been any panic among Chinese companies and residents. More and more people realize that it is unrealistic to obtain investment income through the purchase and sale of foreign exchange, and transfer financial assets overseas. It is also not safe. In mature market countries, few companies and residents rely solely on speculation to obtain investment income.