As for exchange rates, we have pursued a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. The RMB exchange rate has moved in both directions with enhanced resilience, playing its role as an automatic stabilizer in adjusting the macro economy and the balance of payments. The exchange rate is another important macro-economic variable.
The response of large banks to local needs, consistent with sound and prudent management, must be compatible with global strategies and vision. Thorough supervisory screening of the requirements of officers of banks and other intermediaries is a fundamental instrument of control, a guarantee of stability.