"Compared with the previous two periods of U.S. dollar appreciation, the renminbi exchange rate has become less sensitive to U.S. dollar index fluctuations since 2021," Pan Gongsheng, head of the State Administration of Foreign Exchange, said at the Annual Conference of Financial Street Forum 2022.
"Globally, compared with the currencies of major developed and emerging markets, the depreciation of the RMB is at an average level. Despite fluctuations, cross-border capital flows have been stable and orderly on the whole," Pan added.
Pan, also the deputy governor of China's central bank, attributed the forex market's resilience to the renminbi's strengthening two-way fluctuation and flexibility, a surplus in the basic international balance of payment, the improving foreign debt structure and the promotion of exchange rate hedging instruments.
Looking ahead, China's forex market will maintain sound operation, Pan said, citing the solid fundamentals of China's long-term sound economic growth and possible changes in the internal and external macro environments.