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Voluntary Settlement System

2023/2/26 13:58:50  Classification:   Participation: 4  

What is the Voluntary Settlement System The Voluntary Settlement System refers to the fact that rebatemeaninginforex addition to the best forex rebate rebateinforextrading accounts that can be retained by the state, enterprises rebatesinforex individuals must sell their excess foreign exchange to the designated foreign exchange banks, and the designated foreign exchange banks must sell the foreign exchange above the position of the State Administration of Foreign Exchange in the interbank bestforexrebate In this cashback forex, the central bank is the largest receiver in the interbank market, thus forming the countrys foreign exchange reserves Advantages and disadvantages of the voluntary settlement and sale system The voluntary settlement and sale system can increase the enthusiasm of enterprises to use foreign exchange independently, thus curbing the growth of Chinas foreign exchange reserves, easing the pressure of RMB appreciation, reducing the foreign exchange balance and maintaining the independence of monetary policy; it is also conducive to increasing the enthusiasm of non-financial enterprises to participate in the foreign exchange market, further expanding the subjects and scale of transactions in the foreign exchange market, thus promoting the level of RMB exchange rate to However, under the willful settlement system, as the scale of foreign exchange holdings of enterprises and residents continues to expand, their foreign exchange holdings will have an impact on the foreign exchange market, especially if there is a herding effect, a large number of market players may simultaneously conduct foreign exchange transactions in the same direction, which will lead to significant market volatility Impact of the willful settlement system 1, marketization of exchange rate prices Under the compulsory settlement system, Chinas interbank The foreign exchange market mainly cooperates with the foreign exchange designated banks to balance the positions arising from the settlement and sale transactions in this market pattern, commercial banks are not based on commercial needs to buy and sell foreign exchange in the foreign exchange market, their trading behavior is to fulfill the State Administration of Foreign Exchange on the management of the settlement and sale of foreign exchange turnover position, concealing the real demand for foreign exchange, can not form a real foreign exchange price implementation of the willingness to settle and sell foreign exchange, can be more flexible to reflect The policy intent of implementing the willingness to settle and sell foreign exchange is to "hide foreign exchange with the people": from the state holding foreign exchange to gradually relax the policy restrictions on the holding and use of foreign exchange, so that the private sector can hold more foreign exchange to transform the centralized reserve management system into a decentralized reserve system. Since 2003, with the unprecedented strong expectations of RMB appreciation and the massive influx of hot money, China has gradually accelerated the pace of reform of its foreign exchange management system. The individual no foreign exchange holdings limit at the same time, but also the amount of individual foreign exchange purchases from $ 3,000 gradually mentioned 20,000 U.S. dollars, and the transition from the one-by-one approval to the annual total management The practice of hiding foreign exchange in the people can to some extent defuse the momentum of the surge in foreign exchange reserves, while also using the principle of asset portfolio to achieve the purpose of diversification to reduce the risk of division, while improving the return on assets, because people will actively and People will actively manage the assets in hand to avoid market risks and even learn from foreign experience, using both domestic and foreign markets to contribute to the preservation and appreciation of Chinas foreign exchange reserves.

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