State Administration of Foreign Exchange: Strengthen macroprudential management and anticipatory guidance in the foreign exchange market to maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level

The Zhitong Finance App learned that recently, Zhu Hexin, Party Secretary and Director of the State Administration of Foreign Exchange, presided over a party group (enlarged) meeting to convey the spirit of studying the Central Economic Work Conference. The conference mentioned the steady expansion of high-level institutional openness in the foreign exchange sector. Adhere to both “live” and “manage well”, connect with high-standard international economic and trade rules, and strengthen the supply of high-quality foreign exchange policies. Deepen foreign exchange management reforms for foreign direct investment. Optimize and upgrade foreign exchange management policies in pilot free trade zones and free trade ports. At the same time, maintain the steady operation of the foreign exchange market. Adhere to the bottom line, strengthen macroprudential management and anticipatory guidance in the foreign exchange market, maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level, and maintain the basic balance of payments.

The original text is as follows:

The Party Group of the State Administration of Foreign Exchange conveyed the spirit of studying the Central Economic Work Conference

Recently, Zhu Hexin, Party Secretary and Director of the State Administration of Foreign Exchange, presided over a party group (enlarged) meeting to convey the spirit of studying the Central Economic Work Conference and to study and deploy implementation measures in line with the requirements of the National Financial System Work Conference. Party members of the State Administration of Foreign Exchange attended the meeting.

According to the conference, General Secretary Xi Jinping's important speech at the Central Economic Work Conference comprehensively summarized economic work in 2025 and the “14th Five-Year Plan” period, thoroughly analyzed the current economic situation, deepened the understanding of how to do a good job in the economy under the new situation, and systematically deployed economic work in 2026. It was highly political, ideological, and leading, pointing out the direction and providing fundamental guidelines for doing a good job in the economy next year and the coming period. Premier Li Qiang put forward clear requirements for implementing the spirit of General Secretary Xi Jinping's important speech and doing a good job in the economy next year. The National Financial System Work Conference made specific arrangements for completing key tasks for next year. Foreign exchange management departments should carefully study and understand, effectively unify their thoughts and actions into the Party Central Committee's scientific judgment of the situation, and do a solid job in foreign exchange management.

The conference pointed out that this year has been an extraordinary year. The Party Central Committee, with Comrade Xi Jinping at the core, has united and led the whole Party and the people of all ethnic groups across the country to rise to the challenge and work hard. China's economy is under pressure to move forward and develop towards new excellence. The main goals of economic and social development will be successfully completed, and the “14th Five-Year Plan” will soon come to a successful conclusion. Achieving these achievements was not easy. Basically, the Party Central Committee, with Comrade Xi Jinping at the core, led the helm, and Xi Jinping's ideological and scientific guidance of socialism with Chinese characteristics in the new era.

The conference emphasized that 2026 is the beginning of the “15th Five-Year Plan”, and it is of great significance to do a good job in the economy. Foreign exchange management departments should be guided by Xi Jinping's ideology of socialism with Chinese characteristics in the new era, deeply understand the decisive significance of “two establishment”, resolutely carry out “two maintenance”, fully implement the deployment of the Central Economic Work Conference and the requirements of the National Financial System Work Conference, accurately grasp the “five essentials”, better coordinate development and security, closely focus on risk prevention, strong supervision, and promotion of high-quality development, and focus on building a “more convenient, more open, safer, and more intelligent” foreign exchange management system mechanism. Focus on the following tasks:

The first is to focus on enhancing the dynamism of high-quality development. Further promote the reform of the bank foreign exchange exhibition industry and the facilitation of cross-border trade and investment, and increase foreign exchange support for the real economy. “Five major articles” on finance focusing on supporting scientific and technological innovation and micro, small and medium-sized enterprises. Deepen the development of the foreign exchange market, improve the efficiency of resource allocation in the foreign exchange market, and improve enterprise exchange rate risk management services. Actively support the development of new forms of trade such as cross-border e-commerce.

The second is to steadily expand high-level institutional openness in the foreign exchange sector. Adhere to both “live” and “manage well”, connect with high-standard international economic and trade rules, and strengthen the supply of high-quality foreign exchange policies. Deepen foreign exchange management reforms for foreign direct investment. Optimize and upgrade foreign exchange management policies in pilot free trade zones and free trade ports.

The third is to maintain the steady operation of the foreign exchange market. Adhere to the bottom line, strengthen macroprudential management and anticipatory guidance in the foreign exchange market, maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level, and maintain the basic balance of payments.

Fourth, further strengthen supervision during and after the event. Use artificial intelligence, big data, etc. to enable intelligent supervision and accurately crack down on illegal and illegal activities in the foreign exchange field.

Fifth, improve the management of foreign exchange reserves to ensure the safety, flow, and appreciation of foreign exchange reserve assets.

The sixth is to strengthen the Party's overall leadership over foreign exchange management. Persevere in promoting comprehensive and strict government of the Party. Consolidate and expand the results of central inspection and rectification. Promote the normalization and long-term effectiveness of work style construction. Build a team of highly qualified and professional cadres who are loyal, clean and responsible.

The meeting demanded that foreign exchange management departments should unite more closely around the CPC Central Committee with Comrade Xi Jinping at the core, actively plan foreign exchange management work for next year and the next five years, overcome difficulties and forge ahead, ensure that the Party Central Committee's decisions and deployments are implemented, and contribute foreign exchange strength to the “15th Five-Year Plan” and get off to a good start.

Comrades in charge of the Discipline Inspection and Monitoring Team of the People's Bank of China, and comrades in charge of various departments and public institutions of the bureau attended the meeting.

This article was compiled from the official website of the “State Administration of Foreign Exchange”. Zhitong Finance Editor: Liu Jiayin.