New Situation, New Stage and New Tasks

It is an important policy goal of China to maintain the stability of renminbi value and the equilibrium of the balance of payments. Since 2021，the COVID-19 pandemic has recurred globally，and the recovery of the world economy remains uncertain. China's economy registers a stable performance with good momentum for growth，its balance of payments is running steadily and its foreign exchange market is more mature and rational. In the first half of this year，China's banks recorded a surplus in foreign exchange sale and purchase，and both the receipt and settlement of foreign exchange for trade in goods remained at a relatively high level，reflecting the steady improvement of the domestic economy driven by the resumption of production and work. The renminbi exchange rate against the US dollar remained basically stable at a reasonable and balanced level. It closed at 6.4612 on the last trading day of the first half of the year，down only 8 basis points from 6.4620 at the beginning of the year，maintaining the stability of the currency value.

The year 2021 marks the start of the 14th Five-Year Plan. China has completed the building of a moderately prosperous society in all respects and made historic achievements of eliminating absolute poverty. Now it is moving toward the second centenary goal of building China into a great modern socialist country in all respects. In the new historical stage，China's foreign exchange situation has also undergone profound changes，and the balance of payments has maintained a basic equilibrium，which has been constantly consolidated. First，the current account surplus as a percentage of GDP has remained below 2% for five consecutive years，a surplus within a reasonable range. In the first half of this year，the current account continued this trend，and cross-border capital flows were also balanced. Second，as the renminbi exchange rate has become more flexible in recent years，its volatility has also increased，but