Bloomberg News Agency (Bloomberg) report the statement ofYi Kang (Yi Gang) Governorcentral bank of china (PBOC) in Washington, United States, today (April 16, 2023) that Beijing’s central government has ended most of its regular foreign-exchange intervention and pursued a more convenient policy for foreign currency users.yuanmore
However, the authorities still reserve the right to intervene in the market. “I have not announced that there will be no market intervention. But sooner or later the market will be able to overcome central bank control.”
According to a Bloomberg reporter, Yi Gang’s presentation slides clearly show that in recent years the PBOC has reduced its initial intervention.Regular Intervention) lots of
The U.S. Treasury Department has consistently criticized China through its semiannual foreign-exchange reports. lack of transparencyFor managing the country’s exchange rate
Most recently, in November, the US official said through such reports that China was “Outside the box” that do not disclose information within the country Beijing often provides limited information on things including “Policy objectives of the exchange rate management system” not disclosed
Yi Gang continued: “Basically, it can also be called China’s monetary system. It is a managed, floating regime, primarily determined by market, and it works well in China.”
“Right now, there is no clear date when the renminbi can be freely converted. Because now the basic policy is only to increase the convenience of using the yuan.”
interest rate
on the contrary At present, Chinese people can exchange foreign currency up to 50,000 dollars per year per person (about 1.65 million baht). However, 99% of people do not exercise the right to exchange currency, so it can be clearly seen that “The quota is not a limitation onexchange“
If you consider the big picture The US-China exchange rate was in a reasonable “equilibrium” without sudden large capital outflows. And in the past, China has not implementedCapital account surplus monetary policywith (A Capital-account Surplus)
Yi Gang added that the PBOC has “Two Pillars” in creating price and financial stability (Price and Financial Stability) in practice over time China’s goal is to let interest rates adjust according to inflation and average slightly below real economic growth.
However, the calculation of China’s potential growth is highly controversial. The analysis of the Bloomberg news agency stated that Yi Gang noted that economists at Peking University estimated China’s growth potential to be “extremely high”, but his presentation slides used estimates compiled from Tsinghua University. Also, one of his slides shows that last year’s growth potential figure was slightly above 5%, while in 2012 it was up to 8%.
Conversation on “Debt”
According to Bloomberg News, the PBOC under Yi’s leadership Kang has taken measurable easing measures since the outbreak ofCOVID-19 (A Measured Easing Approach) by avoiding large interest rate cuts. or use informal measures such as quantitative easing (QE)
China’s economy has rebounded since the government lifted its zero-covid measures late last year. Among some analysts who look differently about China’s growth rate after this Including the issue of whether the PBOC should increase economic stimulus measures to support growth or not.
Yi Gang traveled to Washington for a meeting this week to attend talks.International Monetary Fund (IMF) thenand world bank (World Bank) to negotiate debt restructuring for poor countries under billions of dollars in debt
He also held a meeting with 20 other central bankers and finance ministers, stating part of the discussions that “China’s economy is expected to grow around 5% this year with low inflation. and the real estate market is improving.”
