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cailianshe news, september 5 (reporter wang hong)at a press conference on "promoting high-quality development" held by the state council information office today, zou lan, director of the monetary policy department of the people's bank of china, said that there is still room for the average statutory reserve ratio of financial institutions, which has aroused heated discussions in the market. industry experts believe that 5% may be the lower limit of the current reserve ratio, which means there is still room for a 2 percentage point reduction in the reserve ratio, and it is very likely that a 0.5 percentage point reduction will be arranged in the fourth quarter.

in terms of exchange rate, lu lei, deputy governor of the people's bank of china, said that the rmb exchange rate remained basically stable at a reasonable and balanced level. in terms of financial risk prevention and control, lu lei revealed that the number of high-risk small and medium-sized banks has been reduced by nearly half from the peak. regarding the next monetary policy orientation, lu lei said that we should focus on the total amount, interest rate and structure. zou lan also revealed that the people's bank of china bought short and sold long in august, and net bought 100 billion yuan of treasury bonds.

there is still room for the deposit reserve ratio, but the downward trend of deposit and loan interest rates faces constraints

"policy adjustments such as lowering the reserve requirement ratio and interest rates still require observation of economic trends. among them, the statutory reserve ratio is a tool for us to supply long-term liquidity," said zou lan, adding that the policy effects of lowering the reserve requirement ratio at the beginning of the year are still continuing to emerge. currently, the average statutory reserve ratio of financial institutions is about 7%, so there is still room for improvement.

wang qing, chief macro analyst at orient securities, believes that considering that some corporate financial institutions that have implemented a 5% reserve requirement ratio did not cut the reserve requirement ratio in the previous few cuts, it is very likely that 5% is the lower limit of the current reserve requirement ratio.

"this means there is still room for a 2 percentage point reduction in the reserve requirement ratio. if it is reduced by 0.5 percentage points each time, there will be 4 more reductions," wang qing predicted. in terms of timing, considering the current ample liquidity in the banking system, he believes that the reserve requirement ratio cut is likely to be scheduled in the fourth quarter, with a reduction of 0.5 percentage points, releasing 1 trillion yuan in funds, mainly to support the issuance of government bonds.

since the beginning of this year, the market interest rates for loans with a term of one year and more than five years have fallen by 0.1 and 0.35 percentage points respectively, driving the average loan interest rate to continue to decline. at the same time, it should be noted that due to factors such as the speed of bank deposits diverting to asset management products and the extent of the narrowing of bank net interest margins, there are still certain constraints on the further decline of deposit and loan interest rates, zou lan also pointed out.

monetary policy focuses on aggregate, interest rates and structure

zou lan said that china will continue to pay close attention to the monetary policy adjustments of major developed economies. at the same time, china's monetary policy will continue to focus on itself and give priority to supporting domestic economic development.

regarding the next monetary policy orientation, lu lei said that we should focus on the total amount, interest rate and structure. the people's bank of china will continue to adhere to a supportive monetary policy, accelerate the implementation of the policy measures that have been introduced, and more effectively support the high-quality development of the economy.

in terms of total volume, we will use a variety of monetary policy tools to maintain a reasonable level of liquidity, guide banks to enhance the stability and sustainability of loan growth, and keep the scale of social financing and money supply in line with the expected targets of economic growth and price levels. in terms of interest rates, we will give full play to the driving role of the recent downward trend of policy interest rates and loan market benchmark interest rates, so as to promote a steady decline in corporate financing and resident credit costs. in terms of structure, we will increase the implementation of existing tools and promote the implementation of newly established tools, mainly to improve the efficiency of fund use and increase high-quality financial services for major strategies, key areas and weak links.

net purchase of government bonds in august: 100 billion yuan

when talking about how to optimize and improve the monetary policy framework with chinese characteristics, zou lan introduced it from the aspects of considering optimizing the intermediate variables of monetary policy regulation, reforming the interest rate regulation mechanism, improving the market-oriented interest rate regulation mechanism, enriching the monetary policy toolbox, and unblocking the monetary policy transmission.

in terms of enriching the monetary policy toolbox, he revealed that the people's bank of china has started treasury bond trading operations since august this year, and issued the first "treasury bond trading business announcement" at the end of the month. in august, it bought short and sold long, with a net purchase of 100 billion yuan of treasury bonds. the people's bank of china will also innovate and implement structural monetary policy tools in light of the macro situation and policy regulation needs, and continue to improve the efficiency of monetary policy.

zou lan introduced that there are two stages in the transmission of monetary policy. the first is the transmission from the people's bank of china to the financial market. it is necessary to strengthen policy communication and expectation guidance, improve the transparency of monetary policy, and enhance the independent and rational pricing ability of financial institutions. the second is the transmission from the financial market to the real economy. it is necessary to focus on unblocking the transmission bottlenecks, strengthen the coordination of monetary policy with fiscal, industrial, and regulatory policies, promote supply and demand balance, support the focus of economic policies to shift more to the areas of benefiting people's livelihood and promoting consumption, enhance the transmission effect on real economic variables such as consumption and investment, and enhance the focus of financial services. he believes that the transmission of monetary policy should be further unblocked.

exchange rate flexibility continues to increase

regarding the performance of the rmb exchange rate, lu lei believes that the rmb exchange rate will remain basically stable at a reasonable equilibrium level this year.

li hongyan, deputy director of the state administration of foreign exchange, said that the market-based formation mechanism of the rmb exchange rate has been continuously improved, the elasticity of the exchange rate has been continuously enhanced, and the automatic stabilizer function of the exchange rate in adjusting the balance of payments has been continuously improved. with the reform and development of the foreign exchange market, the exchange rate risk management capabilities of enterprises have been significantly improved, and foreign exchange market transactions have become more rational and orderly. the balance of payments has gradually changed from a "double surplus" pattern under the current account and capital account to an autonomous balance pattern of "one surplus and one deficit", and foreign exchange reserves have remained basically stable.

li hongyan also pointed out that the depth and breadth of the foreign exchange market continue to expand. according to reports, there are more than 40 tradable currencies in my country's foreign exchange market, and the trading varieties have also covered the international mainstream foreign exchange products. in the first seven months of this year, the total transaction volume of my country's foreign exchange market was close to 23 trillion us dollars, an increase of 8.7% year-on-year; during the same period, more than 20,000 merchants handled exchange rate hedging for the first time, helping more companies to use foreign exchange derivatives to better manage exchange rate risks.

the number of high-risk small and medium-sized banks has dropped by nearly half from the peak, and the digital rmb has accumulated transactions of 7 trillion

lu lei said that monetary policy and the five major financial articles are the foothold for the people's bank of china to promote the high-quality development of financial services for the economy and society. risk prevention and control and financial openness are the inherent requirements for promoting the high-quality development of the financial industry itself.

"the number of high-risk small and medium-sized banks has been reduced by nearly half from the peak," lu lei revealed. since the beginning of this year, the focus has been on improving the risk prevention and disposal mechanism. the people's bank of china has continued to strengthen the construction of financial risk monitoring, early warning and assessment capabilities, paying special attention to the construction of hard constraint early correction mechanisms, paying special attention to risk prevention and control of small and medium-sized financial institutions, and paying special attention to promoting risk prevention through reform. by establishing a financial risk disposal mechanism with equal rights and responsibilities and compatible incentives and constraints, we will strengthen the guarantee of risk disposal resources and weave a tight and solid financial safety net.

regarding the digital rmb, lu lei also said that the digital rmb has been piloted in 17 provinces (autonomous regions and municipalities), and has been continuously explored in the fields of wholesale and retail, catering, culture and tourism, education and medical care, forming a number of online and offline, replicable and popularizable application solutions. as of the end of june this year, the cumulative transaction amount of the digital rmb reached 7 trillion yuan.

optimize the qualified foreign investor system and deepen the reform of foreign exchange management under capital projects

xiao sheng, director of the capital account management department of the state administration of foreign exchange, said that the state administration of foreign exchange will continue to deepen the reform of foreign exchange management of capital accounts, continuously improve the quality of capital account opening, and start from scientifically grasping the timing and effectiveness of capital account opening, deepening the reform of foreign exchange management of capital accounts from point to surface, and supporting the opening-up and development of key regions.

xiao sheng specifically introduced that it includes orderly promoting foreign exchange management reforms in various fields such as direct investment, cross-border financing and cross-border securities investment. continue to promote the integrated promotion of pilot policies for cross-border investment and financing facilitation. promote and improve the integrated management of foreign currency and rmb overseas loans. steadily promote the upgrading and expansion of multinational companies' capital pool business. improve the management of funds for direct overseas listings of domestic enterprises and optimize the qualified foreign investor system. support multinational companies to set up global or regional treasury centers in shanghai, support the guangdong-hong kong-macao greater bay area to take the lead in piloting various innovative policies, and steadily promote the construction of hainan free trade port, hengqin and qianhai cooperation zone. increase support for the facilitation of cross-border investment and financing and the use of funds.