Yi Gang calls for qualified service level for exchange monitoring

发布:2012-10-16 编辑:2012-10-16
At the beginning of the year, the National Conference of Foreign Exchange Administration was held at the city of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Kunmin

At the beginning of the year, the National Conference of Foreign Exchange Administration was held at the city of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Kunming, during which the works accomplished in 2009 have been summarized with tasks put forward for 2010. Yi Gang, director of the State Foreign Exchange Administration, interviewed China Forex when the meeting ended.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

 

Reporter: How should we take the remark, when you referring to the management of foreign exchange to be carried out with a global perspective?

 

Yi: We should keep the whole world in view to treat the issue of domestic finance and the management of foreign exchange based on open economy. The key point is meant to making it clear “the marketed fundamental role of resource allocation”. China has gradually integrated into world economy and has become one of the important members. The constant change of global capital flows has imposed challenges progressively over our control of foreign exchange. Arbitrage opportunities would appear, and could probably intrude through the channel of capital account which still partially confined, compared to the fully-opened current account, so that financial adjustment and cross-border asset distribution should be conducted to prevent risks in normal trading and investment.

 

At the end of Asian financial crisis, China saw a warm expectation of the rise of yuan with rapid growth of domestic economy in 2003.  Overseas enterprises and individuals mostly inject their profits back to China, together with speculate funds in the name of investment, and thus make exchange reserve soaring up by 280 billion dollars averagely from 2003 to 2009.

 

Reporter: particularly, the management of foreign exchange is nor understandable to the public, we have noticed in 2009 the top regulator has issued varied measures and stipulations in transparent way to strengthen the work in this field, what else steps are about to take in the new year?

 

Yi: in deed the public has difficulty to see clear such many regulations thereto, not mention the possible mislead from some Medias. We would further intensify publicity and introduce exchange policies in readable words to win more support from the public.

 

Reporter: would you give some words about the safety use of exchange reserve, exceeded 2 trillion US dollar?

 

Yi: we would constantly improve the management of the exchange reserves so as to make it preserved or increased, and we would take precautions in operation of exchange business, to seize good opportunities in investment with careful studying of world financial background. Moreover, we would make great effort to strive for perfected investment in different ways, optimizing of the fund and asst distribution, enhancing internal supervision, strengthening our capabilities to handle emergencies, etc.