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Zhou Xiaochuan, the former governor of the People's Bank of China, said on Friday that he was confident that the RMB exchange rate formation mechanism would be more market-oriented, more in line with internationally recognized ways, with a larger floating range and more effective response to market supply and demand.
In an interview with the media on the sidelines of the Boao Forum for Asia, he said that it was very early for the RMB exchange rate formation mechanism to move towards a managed floating exchange rate and the direction was clear. Whether in China or in the global economy, especially emerging capital flows are intricate. In this case, the road may not be smooth and tortuous, but in general, it is moving in this direction.
He pointed out that a flexible floating exchange rate is helpful to achieve a better balance of the economy and to allocate market resources and gain international recognition for China.