High-Quality Development of Foreign Exchange Reserves Supports...
Title: High-Quality Development of Foreign Exchange Reserves Supports Chinese Modernization
China Forex: Could you start by explaining some general information on where the foreign exchange reserves administration is in 2023?
JIAO Haisong: China's foreign exchange reserves have consistently prioritized safety, liquidity, and value preservation and appreciation as operational objectives, with risk prevention taking precedence. Operating on market-oriented principles, we have pursued diversified and decentralized investments. In 2023, amid a complex and challenging global environment, with major central bank policy interest rates reaching their 15-year highs and increased downward pressure on the global economy, international financial markets experienced intense volatility, posing formidable challenges for foreign exchange reserve investments.
Under the direct leadership of the People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE), we have diligently implemented the decisions and directives of the CPC Central Committee and the State Council. We maintained the strategic focus and systematically advanced the development of professional investment capabilities, technology-backed operational capabilities, and market-oriented institutional governance capabilities. This proactive and steadfast approach has enabled us to effectively manage and respond to increasingly severe challenges, ensuring the safety, liquidity, and appreciation of our foreign exchange reserve assets. Throughout the year, the scale of our foreign exchange reserves remained stable at over US$3.1 trillion, reaching US$3.238 trillion by the end of the year, marking an increase of US$110.3 billion from the beginning of the year. It has played a pivotal role in safeguarding the stability and security of China's economy and finance.
China Forex: Could you explain the strategies for managing and administering foreign exchange reserves in 2024?
JIAO Haisong: The year 2024 marks the 75th anniversary of the founding of the People's Republic of China and is a critical year for achieving the objectives of the 14th Five-Year Plan (2021-2025), implying paramount