Core Viewpoint - After the global financial crisis, China has actively explored and implemented foreign exchange macro-prudential policies with Chinese characteristics during its gradual financial opening process. The main goals of these policies are to stabilize the RMB exchange rate and manage cross-border borrowing by domestic enterprises, rather than solely addressing systemic risks from volatile capital flows [1][2][3]. Summary by Relevant Sections Framework of China's Foreign Exchange Macro-Prudential Policy - The reform of China's foreign exchange management system has undergone three significant phases since the opening up in 1979, transitioning from a planned to a market-oriented system, and establishing a managed floating exchange rate system [4]. - The current phase, starting from 2013, focuses on balancing facilitation and risk prevention, particularly after the "8·11" exchange rate reform in 2015, which established a more market-oriented exchange rate formation mechanism [4][5]. Key Measures of Foreign Exchange Macro-Prudential Policy - Key measures include foreign exchange reserve requirements, middle price management mechanisms, comprehensive position management for banks' foreign exchange transactions, and macro-prudential management of cross-border financing and overseas lending [7][10]. - The foreign exchange reserve requirement includes three types: foreign exchange deposit reserve ratio, forward foreign exchange risk reserve ratio, and reserve ratio for deposits from foreign financial institutions [7][10]. Policy Effects and Adjustments - The foreign exchange deposit reserve ratio has been adjusted multiple times since its introduction in 2004, with the most recent adjustments occurring in 2022 and 2023, reflecting the central bank's response to changing market conditions [13][14]. - The foreign exchange risk reserve ratio was introduced in 2015 to curb excessive volatility in the foreign exchange market, with adjustments made based on market conditions [16][19]. - The comprehensive position management for banks has evolved since 2005, allowing for greater flexibility in managing foreign exchange risks and enhancing the overall development of the foreign exchange market [32][36]. Future Directions - The central bank aims to strengthen macro-prudential management of the foreign exchange market to support high-quality development of the real economy and maintain the RMB exchange rate at a reasonable and balanced level [3][39]. - The implementation of all-encompassing cross-border financing macro-prudential management has been expanded nationwide, allowing for better monitoring and management of cross-border financing activities [39][40].