Market-oriented exchange rates that reflect underlying economic fundamentals contribute to global economic stability. Therefore, the recent appreciation of the Chinese renminbi is a welcome further step towards appropriate valuation. Higher exchange rate flexibility should, however, be supplemented by structural reforms, especially as their positive impact is more sustainable.
4  BIS central bankers’ speeches  Open-ended, calendar-based, and state-contingent forward guidance Forward guidance can take various forms. For example, it can be applied solely to the policy interest rate or to a broader set of monetary stimulus measures including the policy rate and asset purchases. It can be categorized as open-ended, calendar-based, or state-contingent (or threshold-based).