It is an understatement to say that 2020 has been an extraordinary year. Covid-19 has resulted in a massive death toll and sickened millions more. It has delivered a body blow to the world economy and brought turmoil to international financial markets. Despite the daunting external environment，however，China's economy has been able to regain its footing. Its foreign exchange market has managed to operate smoothly and the nation’s balance of payments position has posted surprisingly positive results.

Chen Zhiwei，editor-in-chief of the Foreign Exchange Research Center of the State Administration of Foreign Exchange，discusses these circumstances and what has been called a new equilibrium in the balance of payments with Wang Chunying，deputy director of the State Administration of Foreign Exchange. Wang point out that China's better-than-expected situation is attributable to its domestic support for the economy and the market. China is also likely to see its foreign exchange market operating smoothly in the future. The following is an edited version of their wide-ranging discussion.

New Equilibrium

Chen Zhiwei: Since the beginning of this year，the world economy has been hit hard by the spread of Covid-19 and global financial markets have been buffeted by repeated waves of turmoil. China has adopted a balanced approach to containing the pandemic and preserving economic and social development. This has ensured a recovery of the domestic economy and promoted an equilibrium in the balance of payments. What is your assessment of the foreign exchange situation over the year?