Ministry of Commerce: Exchange rate changes do not indicate the policy orientation of foreign economic trade
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Chen Jian said that China's exchange rate formation system has started from 2005 and has basically formed a floating exchange rate formation mechanism. Despite the financial crisis, starting from June this year, we further promoted the reform of the RMB exchange rate formation mechanism. This exchange rate formation mechanism is adjusted on a controlled and gradual basis. It is an exchange rate policy produced by the Chinese government based on its economic development level and the international economic situation.
Chen Jian said that we have seen a relatively large change in our exchange rate during the reform and promotion process of the exchange rate formation mechanism. Since the exchange reform in 2005, the renminbi has accumulatively increased its value to 24.1%. After the exchange reform, we saw that on the one hand, the appreciation of the renminbi, this appreciation is determined by the Chinese government based on the comprehensive consideration of the situation of the renminbi. However, we also saw that the volatility of the central parity of the RMB exchange rate has increased significantly, and the flexibility of the exchange rate has increased significantly. The mechanism reform of exchange rate formation is indeed steadily advancing. On the one hand, the exchange rate is fluctuating, but the mechanism of formation is more flexible. The currency has undergone changes in various economic factors, and its carrying capacity has increased. This is the purpose of the government to achieve exchange rate reform.
Chen Jian said that of course we can see that the appreciation of the Chinese renminbi is not completely comparable to its own. There are also some reference factors in it. For example, after the financial crisis, trade protectionism in various countries has risen, and some countries are competing for money. Depreciation, this will set off the appreciation of the renminbi, which may not be so large under normal circumstances.
Regarding the relationship between the exchange rate issue and current foreign investment and trade investment, Chen Jian said that we should convert the negative effects it may have on foreign trade investment to a minimum. For example, some products are not easy to export due to appreciation, and it is necessary to accelerate the adjustment of the structure. For the promotion of foreign investment, its positive effect we try to enlarge it. The development of China's foreign investment will definitely have a positive impact on China's economy and the world economy.