(Source: CCTV-2 Financial Channel "CCTV Financial Review" 2024-10-22)
On the morning of October 22, 2024, the State Administration of Foreign Exchange introduced the current overall situation of my country's foreign exchange. In the first three quarters of this year, the transaction volume of my country's domestic RMB foreign exchange market increased by 10.1% year-on-year, and the balance of foreign exchange reserves was US$3,316.4 billion, an increase of US$78.4 billion from the end of 2023. In addition, transactions in the foreign exchange market are relatively active, and the RMB exchange rate remains basically stable despite two-way fluctuations. So what supports the increase in foreign exchange reserves? As the world's major economies enter an interest rate cut cycle, what challenges and risks does the operation of my country's foreign exchange market face? How to ensure the stable operation of my country's foreign exchange market and the balance of international payments? For companies and individuals, how to avoid foreign exchange market risks and maximize benefits? Focusing on these topics, CCTV-2 Financial Channel’s “CCTV Financial Review” column invited w88 casinoJiang Ping, Professor of Finance at the w88 casino of International Economics and w88Interpret.
In the first three quarters of this year, net cross-border capital inflows into China resumed. Banks’ foreign-related income on behalf of customers was US$5,259.4 billion, and external payments were US$5,256.6 billion, with a surplus of US$2.8 billion. Professor Jiang Ping said that my country's foreign exchange market is highly active and cross-border capital flows are balanced. First of all, despite the many challenges faced by the global economy, the complex and volatile financial situation, and rising geopolitical risks, China still shows a stable recovery trend in cross-border funds. The net inflow of funds may reflect China's competitiveness and attractiveness in global w88, investment and other fields. China's foreign exchange market shows high activity and strong resilience. Secondly, the smaller surplus indicates that cross-border capital flows are relatively balanced, which may be related to a series of policy measures adopted by China to stabilize foreign w88 and foreign investment. This equilibrium helps maintain the stability of the foreign exchange market and also helps curb violent fluctuations in the RMB exchange rate.
Foreign capital allocation assets generally show a good momentum, and the proportion of RMB in global cross-border transactions has steadily increased. Professor Jiang Ping believes that the attractiveness of RMB assets stems from the following three points: first, China's economy is expected to be stable and positive, and the value of the RMB currency is stable; second, assets are diverse, and my country has a complete and multi-layered capital market, which provides foreign investment with multiple channels and asset choices; third, the return performance of people's assets is relatively independent. In the face of global geopolitical risks and the need for de-dollarization after the U.S. dollar interest rate cut, RMB has become a better option.
The Federal Reserve announced an interest rate cut, which has affected the operation of my country's foreign exchange market to a certain extent.Professor Jiang PingPointed out that in general, the RMB exchange rate has remained basically stable amid two-way fluctuations, which is inseparable from the country's continued high-level opening up and the further improvement of the resilience of the exchange rate market. Countercyclical macro-prudential adjustments, balance of payments equilibrium, and expectation management by the central bank and the State Administration of Foreign Exchange play an important role in maintaining exchange rate stability.
Professor Jiang Pingsaid that the U.S. election on November 5 is a very large factor affecting the exchange rate in the short term. This has brought great uncertainty to global monetary policy and may also have a big impact on my country's foreign w88. For enterprises, in addition to good foreign exchange management, efforts to improve the competitiveness of products are important measures to deal with exchange rate risks.
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https://tv.cctv.com/2024/10/22/VIDE57JB8TiEizOwq9AkBcJg241022.shtml
