China Is Expected To Set Up A Deposit Insurance System This Year To Push The Exchange Rate Marketization.

"P" quoted the vice president of the people's Bank of China and the director of the State Administration of foreign exchange, Yi Gang, said that China will advance the financial reform step by step and coordinate. In order to reform the market order, we should give priority to the exchange rate marketization. China is expected to set up a deposit insurance system this year. < /p >
< p > he said that China is currently pushing forward the exchange rate marketization, interest rate marketization and < a href= "//www.sjfzxm.com/news/index_cj.asp" > capital account /a > convertibility and other financial reforms, but these reforms have priority. < /p >
< p > China should first vigorously promote the "a href=" //www.sjfzxm.com/news/index_cj.asp "exchange rate < /a > marketization reform, enhance RMB exchange rate flexibility and realize two-way fluctuation of exchange rate, and then cautiously push forward the reform of interest rate marketization step by step, at the same time, gradually promote some capital account convertibility reform. < /p >
< p > Yi Gang emphasizes that capital account convertibility reform is a relatively long process and can not be accomplished overnight. < /p >
< p > Yi Gang also admitted that China's < a href= "//www.sjfzxm.com/news/index_cj.asp" > financial reform < /a > was subject to certain conditions. Taking the interest rate liberalization reform as an example, from the micro level, many enterprises and local government financing platforms lack the budgetary hard binding mechanism, are not sensitive to interest rates, and have not yet prepared for the marketization of interest rates. From a macro perspective, the current Chinese economy is facing some downward pressure. If the interest rate liberalization is fully liberalized now, short-term interest rates and financing costs will not be conducive to stabilizing economic growth. < /p >
"P" Yi Gang also said that after a period of time, the outside world could clearly see that China is still sticking to the market-oriented reform of the RMB exchange rate formation mechanism, and it is expected that the RMB exchange rate flexibility will further enhance in the future, and two-way volatility will become the norm. < /p >
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Jordan, President of the P SNB, said on Saturday (April 12th) that if the European Central Bank (ECB) loosens further, the euro will weaken against the US dollar and should benefit Switzerland. Even when the euro weakened against the US dollar and the exchange rate of the Swiss Franc weakened, the Swiss Franc remained strong, which was supported by the recent risk aversion effect. (Thomas Jordan) < /p >
Jordan said in an interview that he reiterated that the SNB will defend the lower exchange rate of the euro and Swiss Franc (i.e. the upper limit of the Swiss Franc exchange rate). Once the further easing of the euro zone threatens the further rise of the Swiss Franc exchange rate, the SNB will not hesitate to take other measures. P < /p >
< p > Jordan pointed out that the Swiss Franc exchange rate cap is the main policy tool of the Swiss central bank, and the Swiss central bank will therefore strengthen this position in the future to maintain appropriate monetary conditions. < /p >
Jordan P reiterated that the SNB has already said it does not rule out the possibility of negative interest rates. < /p >
Jordan P does not believe that there is a serious risk of deflation in the euro area. In contrast, Switzerland has a higher risk of deflation. < /p >
Less than P, in the case of the euro zone debt crisis, which made the exchange rate of the Swiss Franc higher, the SNB was forced to set the lower limit of the euro to the Swiss Franc exchange rate at 1.20, which is currently trading at 1.2160 front-line < /p >.