过去人民币汇率多轮升贬值的经验表明，人民银行有充足的工具箱、丰富的经验应对人民币汇率贬值，有能力保持人民币汇率在合理均衡水平上基本稳定。The central bank's monetary policy meeting for the fourth quarter shows a significant change in its statements regarding Exchange Rates; the news release removed the expression "enhancing Exchange Rate flexibility" and restored the expression "three resolutes", conveying a clearer and stronger signal for stabilizing the Exchange Rate. Historical experience indicates that the People's Bank has a sufficient toolbox and rich experience to respond to the depreciation of the RMB and the ability to maintain the RMB Exchange Rate basically stable at a reasonable equilibrium level.
The news release from the People's Bank of China Monetary Policy Committee's meeting in the fourth quarter of 2024 shows a significant change in its statements regarding Exchange Rates, pointing out that "enhancing Forex market resilience, stabilizing market expectations, strengthening market management, resolutely handling behaviors that disrupt market order, resolutely preventing the formation of unilateral consistency expectations and self-fulfillment, resolutely preventing Exchange Rate overshooting risks, and maintaining the RMB Exchange Rate basically stable at a reasonable equilibrium level."
Compared to the statements from the third quarter meeting, this news release conveys a clearer and stronger signal for stabilizing the Exchange Rate, removes the expression "enhancing Exchange Rate flexibility", emphasizes "strengthening market management, resolutely handling behaviors that disrupt market order, resolutely preventing the formation of unilateral consistency expectations and self-fulfillment, resolutely preventing Exchange Rate overshooting risks", and restores the previous expression of "three resolutes", demonstrating the People's Bank's firm determination to maintain the stability of the RMB Exchange Rate, which is also an important basis for determining the future direction of Exchange Rate policy and is conducive to stabilizing Forex market expectations.
Past experiences of multiple rounds of appreciation and depreciation of the RMB indicate that the People's Bank has a sufficient toolbox and rich experience to respond to the depreciation of the RMB and the ability to maintain the RMB Exchange Rate basically stable at a reasonable equilibrium level.
