Zhou Xiaochuan: The Daily Fluctuation Range Of The RMB Exchange Rate Will Continue To Expand.

< p > Zhou Xiaochuan, governor of the people's Bank of China, said at the Boao forum for Asia on exchange rate reform that China will gradually suspend its intervention in RMB and continue to expand its trading range.

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The exchange rate formation mechanism of RMB P is constantly being reformed. In the future, the RMB exchange rate will be determined to a greater extent by the market, and gradually withdraw from normal foreign exchange intervention.

And the RMB a href= "//www.sjfzxm.com/news/index_cj.asp" > exchange rate < /a > the daily fluctuation range will continue to expand.

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< p > Zhou Xiaochuan said that the two-way fluctuation of exchange rate is a mechanism reform. At the same time, capital flows are not stable around the world. The monthly data actually observed now include cross currency depreciation, not necessarily capital inflow, so the two-way fluctuation of exchange rate is not necessarily related to the formulation of monetary policy.

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< p > in Zhou Xiaochuan's view, < a href= "//www.sjfzxm.com/news/index_cj.asp" > Shanghai and Hong Kong through < /a > is conducive to promoting the cross border use of RMB, and mentioned that the recent RMB exchange rate floating range expanded from 1% to 2%. "The next step will be in this direction."

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< p > in March 17th this year, the central bank expanded the fluctuation range of RMB against the US dollar from 1% to 2%, which is another big step since the April 16, 2012 RMB exchange rate < a href= "//www.sjfzxm.com/news/index_cj.asp" > fluctuation interval > /a > from 0.5% to 1%.

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< p > when it comes to non-traditional monetary policy, Zhou Xiaochuan said that in the past ten years, many countries adopted the monetary policy aiming at inflation.

The central bank's policy interest rate depends on the central bank's policy interest rate, which is achieved through the central bank's policy interest rate.

This is conventional monetary policy.

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< p > unconventional monetary policy means that the traditional monetary policy can no longer play its due effect because of the changing conditions.

We will have to resort to unconventional monetary policy tools, which is mainly quantitative.

Theoretically, the implementation of unconventional monetary policy is to cope with the current situation, resulting in low interest rates or even zero interest rates.

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< p > in Zhou Xiaochuan's view, at present our country implements the unconventional monetary policy, so we must implement it with quantitative measures.

If the future of the central bank can get out of the zero interest rate and low interest rate environment, we will not have to implement the unconventional monetary policy again. We may return to the monetary policy of the past ten years in the future.

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