The increasingly mature foreign exchange market has substantially improved its risk mitigation capabilities. First，the market-oriented reform of the renminbi exchange rate has been steadily promoted，market supply and demand plays a decisive role in the formation of exchange rates，exchange rate flexibility is much stable than the currency of emerging markets，and gradually approaches that of developed markets. Next，with the automatic stabilizer function of foreign exchange in adjusting balance of payments continues to strengthen，pressure on foreign exchange market were effectively released. Next，reforms on two-way financial market opening up and facilitation continue to advance. The “Shanghai-Shenzhen-Hong Kong Stock Connect”，“Bond Connect” and direct investment in the inter-bank bond market have been implemented one after another，qualified investor system has been constantly improving，and domestic stocks and bonds have been included into the international mainstream indexes successively. As a result，our cross-border capital flow channels are broadened，the depth and width of our foreign exchange market are expanded，domestic and foreign participants of the market are enriched，and the scale of cross-border transactions and foreign exchange transactions are steadily promoted. Additionally，the opening up of the bond market has attracted more steady investors like overseas central banks to allocate renminbi assets，which further optimized the structure of our foreign debt. Then，renminbi is becoming more and more international. In 2020，the proportion of renminbi used by domestic enterprises and individuals in cross-border income and expenditure reached 37%，and the proportion of renminbi in international foreign exchange reserves and SWIFT payment settlements has also repeatedly reached new highs. These will help reduce the risks of currency mismatch in China’s cross-border transactions and consolidate the position of renminbi in the global monetary system. Last，the macro-prudential management of cross-border capital flows has been gradually improved through practices，and with the accumulation of experience，the results are becoming increasingly remarkable，which actively assisted in maintaining a sound trading order in the foreign exchange market.

The mature foreign exchange market and mature market players promote each other，and one could not play its function without the other. During recent years，major foreign exchange market players such as domestic banks and enterprises grow constantly. They view and respond to changes in the external environment more rationally，and make significant contributions to maintaining the smooth operation of the foreign exchange market. Meanwhile，mature market players shall further conform to the general trend of market development. For example，being a mature market，renminbi exchange rate will show stronger two-way fluctuation on the basis of stable development. Market players shall better adapt to market changes，judge the overall development situation with dialectical views，abandon unilateral expectations and have long-term trust in renminbi assets. Our corporate sector should enhance their awareness of risk neutrality，stick to their main business，make decisions guided by the soundness and sustainability of their financial conditions，prudently arrange the currency structure of assets and liabilities，and manage exchange rate risks reasonably. The banking sector is expected to continue to improve the supply of relevant services.

In the future，China will accelerate the construction of a new development pattern，promote the construction of a new system for an open economy at a higher level，and steadily improve the two-way opening of the financial market. The foreign exchange market of China will also come to a new development stage，and provide stronger support for the steady and healthy development of the economy.