Latest! The list of market makers in the interbank foreign exchange market has been announced, and these three banks have been added to the list

On March 13, the website of the State Administration of Foreign Exchange updated the interbankforeign exchange marketThe list of market makers includes a total of 25 banks.

Interbank foreign exchange market maker refers to an interbank foreign exchange market member who undertakes the obligation to continuously provide buy and sell prices to members when conducting RMB and foreign currency transactions in the interbank foreign exchange market in our country. Interbank foreign exchange market makers can make markets in the spot, forward, swap, option and other foreign exchange markets according to their own market making capabilities.

Compared with the previous list, in the updated list of market makers, new Zheshang Bank, Citibank, and OCBC Wing Hang Bank were added, while Mizuho Bank, DBS Bank, and Mitsubishi UFJ Bank were listed, and the total number of listed banks remained unchanged.

Experts pointed out that market makers play a positive role in the smooth operation of the market. With the effective implementation of economic stabilization policies and the clear upward trend of the macro economy, the foreign exchange market is expected to maintain a stable operation.

SAFE updates list of market makers in the interbank foreign exchange market

On March 13, the website of the State Administration of Foreign Exchange updated the list of market makers in the interbank foreign exchange market, with a total of 25 banks listed.

According to public information, in 2005, the market maker system was first introduced in our country's interbank foreign exchange market. According to the "Guidelines for Market Makers in the Interbank Foreign Exchange Market" (hereinafter referred to as the "Guidelines"), the SAFE evaluates the market makers in the interbank foreign exchange market and updates the list of market makers every two years.

Compared with the previous list updated in February 2021, the list of market makers in the interbank foreign exchange market updated this time includes new Zheshang Bank, Citibank, and OCBC Yongheng Bank, while the Mizuho Bank, DBS Bank, and Mitsubishi UFJ Bank listed in the previous issue remain unchanged.

The launch of the market maker system has strongly supported the construction of the main trading platform and pricing center for RMB and related products in the interbank market. On the one hand, the continuous improvement of the market maker system has reduced the foreign exchange transaction costs of the real economy. On the other hand, market makers maintain the smooth operation of the foreign exchange market and ensure the balance of market supply and demand.

Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said in 2021 that the interbank foreign exchange market will be optimized on the basis of continuing the competitive three-tier system of "market makers - trying market makers - ordinary institutions". The first layer is comprehensive market makers with diverse types and strong market-making capabilities. At this stage, the number of market makers is tentatively set at 25, and appropriate adjustments will be made in the future according to the development of the foreign exchange market. The second layer is a large number of active sub-product market-making institutions. The third layer is a large number of ordinary institutions.

Our country's foreign exchange market is expected to remain stable

Wang Chunying once pointed out that market makers have become an important participant in our country's foreign exchange market and have played a positive role in the smooth operation of the market.

At present, the RMB exchange rate remains basically stable at a reasonable equilibrium level. According to the data of the China Foreign Exchange Trading Center, on March 13, the central parity rate of the RMB against the US dollar in the interbank foreign exchange market was 6.9375 yuan, an increase of 280 basis points from the previous value.

Last week, the onshore and offshore RMB exchange rates against the US dollar briefly approached the 7.0 mark, and then began to reverse on March 9. On March 13, the onshore and offshore RMB exchange rates against the US dollar returned to the level of 6.87.

Yi Gang, governor of the People's Bank of China, said at a recent press conference held by the State Council Information Office that in the past five years, the exchange rate of the RMB against the US dollar has broken through "7" three times and returned to below "7". It fluctuates in both directions and has increased flexibility. Among all currencies in the world, the RMB is very stable, and this flexible market-oriented exchange rate system also plays an automatic stabilizer for adjusting the macroeconomy and the balance of payments.

Yi Gang said that in the next step, the People's Bank of China will comprehensively use a variety of monetary policy tools to maintain reasonable and abundant liquidity, and the growth rate of broad money and social financing should basically match the nominal economic growth rate. Maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Pang Ming, chief economist and research director of JLL Greater China, told reporters that with the stabilization of economic policies effective, the macroeconomic upward trend is clear, our country's current account and direct investment and other balance of payments situation is stable, cross-border capital flows are stable, and the foreign exchange market is expected to maintain a stable operation.

"We are confident and capable of maintaining the stable operation of our country's foreign exchange market, and maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level." Pan Gongsheng, deputy governor of the People's Bank of China and director of the State Administration of Foreign Exchange, also said at a press conference of the State Council Information Office that in recent years, the operation of our country's foreign exchange market has shown relatively strong resilience, the main body of the market has become more mature, and the transaction behavior has become more rational. Moreover, the People's Bank of China and the Administration of Foreign Exchange, as regulators of the foreign exchange market, have become more calm, calm, mature and experienced in the face of market changes.