1. Based on market supply and demand, it is determined according to the new system and is closely related to the current economic conditions such as import and export trade, inflation level, domestic and capital output and input. Economic changes will be affected by changes in supply and demand.
2, the managed exchange rate is needed to continue to improve and perfect the market, the government must use macroeconomic control measures to remedy the market defects, so the necessary management of the exchange rate is necessary.
It is mainly reflected in the following aspects: the state administration supervises the foreign exchange market, the state implements macro-control on the RMB exchange rate, and the People’s Bank of China conducts necessary market intervention.
3. Floating exchange rate Floating exchange rate system is a moderately flexible exchange rate system.
The People’s Bank of China announces the closing price of the exchange rate against RMB in the interbank foreign exchange market on the same day after the market closes on each working day, which is used as the intermediate price of the exchange rate against RMB in the following working day.
At present, the trading price of USD against RMB in the inter-bank foreign exchange market is still floating within 0.5% of the trading midpoint of USD announced by the People’s Bank of China, and the trading price of non-USD currencies against RMB is floating within 3% of the trading midpoint of this currency announced by the People’s Bank of China.
4, refer to a basket of currencies, refers to the actual situation of the foreign economic development of our country, select certain major currencies, given the corresponding weight, make up a currency basket.
At the same time, in light of the domestic and international economic and financial situation, on the basis of market supply and demand, and with reference to a basket of currencies, we will manage and adjust the RMB exchange rate and maintain the basic stability of the RMB exchange rate at an appropriate and balanced level.
