According to China Internet News, the State Council Information Office held a press conference on April 28. Zhao Chenxing, Vice Chairman of the National Development and Reform Commission, Yu Jiadong, Vice Minister of the Ministry of Human Resources and Social Security, Sheng Qiuping, Vice Minister of Commerce, and Zou Lan, Deputy Governor of the People's Bank of China, introduced the situation regarding policies for stabilizing employment, stabilizing the economy, and promoting high-quality development, and answered questions from reporters. A journalist asked: Recently, there have been significant fluctuations in the US Treasury bonds and the dollar exchange rate market. What impact will this have on the Chinese market? Are you concerned about the decline in US Treasury bonds affecting the returns on China's dollar assets? How does the People's Bank of China view the performance of the renminbi exchange rate this year? Deputy Governor Zou Lan of the People's Bank of China stated that in recent times, the United States has announced significant tariff increases on multiple economies, severely infringing upon the legitimate rights and interests of various countries, seriously damaging the multilateral governance system based on rules, and severely impacting the global economic order, disrupting long-term stable economic growth. At the same time, it has triggered intense fluctuations in global financial markets. Investors' risk sentiment towards dollar assets has risen, the US dollar index has significantly fallen, US Treasury yields have increased, volatility in the US stock market has intensified, and there has been a reconfiguration of global asset portfolios across regions. From our perspective, the economy is off to a good start, continuing its upward trend, the financial system remains sound, financial markets demonstrate strong resilience, operate steadily, and the renminbi-to-dollar exchange rate operates around 7.3. Zou Lan pointed out that we have noticed some fluctuations in the US Treasury market recently. I would like to emphasize that, over the long term, China's foreign exchange reserves have aimed at safety, liquidity, and value preservation and appreciation, investing in international financial markets according to market-oriented and professional principles, achieving relatively effective diversification of investment portfolios. The overall impact of changes in a single market or asset on China's foreign exchange reserves is limited. Zou Lan stated that China's economic foundation is solid, its balance of payments is basically balanced, its foreign exchange market is resilient, and will continue to provide strong support for maintaining the basic stability of the renminbi exchange rate. First, the economic foundation is solid. On April 25, the Central Political Bureau meeting made important deployments for recent economic work. China's economy will continue to improve and grow stronger, responding to external environmental uncertainties with the certainty of high-quality development. Second, the balance of payments is basically balanced. Foreign trade enterprises are actively expanding diversified markets and quickly responding to diverse global market demands. Financial markets are orderly opening up to the outside world, the facilitation level of cross-border investment and financing continues to rise, attracting stable inflows of overseas medium- and long-term capital. Third, the foreign exchange market is resilient. Market participants are more mature, trading behavior is more rational, the ratio of enterprises using foreign exchange derivatives for hedging and the proportion of renminbi cross-border receipts and payments are steadily increasing, which can better respond to external shocks. Fourth, the scale of foreign exchange reserves remains basically stable. In recent months, the foreign exchange reserve balance has remained stable above 3.2 trillion US dollars. Zou Lan stated that in the next stage, the People's Bank of China will continue to implement an appropriately loose monetary policy to support the real economy. At the same time, it will adhere to the managed floating exchange rate system based on market supply and demand and referencing a basket of currencies for adjustment, uphold the decisive role of the market in determining exchange rates, enhance the resilience of the foreign exchange market, stabilize market expectations, strengthen market management, resolutely correct market cyclical behaviors, resolutely deal with actions that disrupt market order, resolutely guard against the risk of excessive exchange rate fluctuations, and maintain the basic stability of the renminbi exchange rate at a reasonable and balanced level. Original source: https://www.toutiao.com/article/7498193818874577458/ Disclaimer: This article solely represents the author's views. Please express your attitude by clicking the 'Support/Disapprove' buttons below.