[Central Bank: China insists on letting the market play a decisive role in the formation of exchange rates] On October 8, the People's Bank of China's policy stance on the RMB exchange rate stated that China implements a managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies. China's exchange rate system has the following characteristics: First, it insists on letting the market play a decisive role in the formation of exchange rates. After years of development, China has gradually formed a multi-level foreign exchange market system with complete functions. The depth and breadth of the foreign exchange market have continued to expand. Business entities independently participate in foreign exchange transactions based on commercial principles. Market supply and demand play a decisive role in the formation of the RMB exchange rate. The People's Bank of China does not set a target level for the exchange rate, does not interfere with the long-term trend of the exchange rate, and maintains exchange rate flexibility and two-way floating. After 2017, the People's Bank of China withdrew from normalized foreign exchange intervention. The second is to focus on preventing large short-term fluctuations in exchange rates, especially short-term sharp depreciation, from affecting financial stability. In certain situations, such as the outbreak of the epidemic and major external shocks such as the tariff war in April 2025, the People's Bank of China uses macro-prudential management tools for adjustment and forecast guidance, and even directly conducts foreign exchange intervention in extreme scenarios to correct the market's "herding effect" and irrational expectations, especially the self-reinforcement of irrational depreciation expectations, and prevent short-term destructive overshooting of the exchange rate. The third is to continuously enhance the transparency of exchange rate policy. Since 2016, China has released balance of payments and related foreign exchange data with higher international standards in accordance with the Special Data Disclosure Standards (SDDS) of the International Monetary Fund (IMF), and continues to increase the dimension and frequency of data release. China has actively responded to the initiative of international organizations and will further report foreign exchange-related data to the IMF starting from 2027.