Core Viewpoint - The article emphasizes the need for a scientific and robust monetary policy system and a comprehensive macro-prudential management framework to enhance the effectiveness of monetary policy in China [1] Group 1: Monetary Policy Mechanisms - The central bank aims to strengthen the role of policy interest rates and narrow the width of the short-term interest rate corridor to improve the transmission of monetary policy to market interest rates [2] - There is a focus on optimizing the monetary policy intermediate variables and maintaining reasonable growth in financial aggregates, while shifting attention from quantity targets to more observational and reference indicators [3] Group 2: Financial Sector Competition and Coordination - The article highlights the need to address "involution" competition and capital churn in the financial sector, while enhancing the effectiveness of monetary policy transmission [4] - It calls for better coordination between monetary policy and fiscal, industrial policies in managing demand and structural adjustments [4] Group 3: Macro-Prudential Tools - The central bank is encouraged to enrich and refine the toolbox of macro-prudential policy instruments to address issues in key areas such as systemically important financial institutions and cross-border capital flows [5] - A standardized and regulated management mechanism for the creation, implementation, evaluation, feedback, and optimization of these tools is proposed [5] Group 4: Exchange Rate Management - The article stresses the importance of allowing the market to play a decisive role in the formation of the RMB exchange rate while maintaining its flexibility to support macroeconomic stability [6] - It emphasizes the need for bottom-line thinking and expectation management to prevent excessive fluctuations in the exchange rate [6] Group 5: Risk Prevention and Economic Stability - The need for comprehensive risk prevention measures in key sectors to avoid significant fluctuations that could impact high-quality economic and financial development is highlighted [7] - The article advocates for timely interventions to correct market "herding effects" and promote a positive cycle between the real economy and financial markets [7] - It also emphasizes the importance of maintaining stability in the real estate market and balancing risk prevention with innovation in internet finance [8]

Core Viewpoint - Vietnam has actively borrowed from the RMB exchange rate system to enhance the flexibility of the VND exchange rate, allowing for two-way fluctuations in its exchange rate mechanism, which is crucial for strengthening financial cooperation with China and expanding bilateral currency settlement [1][30]. Group 1: Historical Exchange Rate Mechanism - Before 2015, Vietnam maintained a fixed exchange rate system pegged to the USD, experiencing significant depreciation during financial crises, with a cumulative depreciation of over 26% during the Asian financial crisis and 30% during the US subprime mortgage crisis [2][3]. - The exchange rate system was characterized by narrow fluctuations and intermittent large depreciations, despite being classified as a hard peg by the IMF [3][6]. Group 2: Reform and Development of Exchange Rate Mechanism - In 2014-2015, Vietnam initiated reforms to its exchange rate formation mechanism to stabilize the foreign exchange market and support its economic reforms [6][7]. - The official exchange rate was established based on supply and demand in the foreign exchange market, with the State Bank of Vietnam managing the exchange rate through monetary policy tools and market interventions [7][8]. Group 3: Introduction of the Intermediate Rate Mechanism - Following China's "8•11" exchange rate reform in 2015, Vietnam introduced an intermediate rate mechanism for the VND, allowing for a more flexible exchange rate that reflects market conditions and trade relationships [9][10]. - The VND exhibited a "half-following" characteristic to the RMB, where it remained stable against the USD until depreciation pressure accumulated, leading to a quick depreciation [11][15]. Group 4: Two-Way Fluctuation and Increased Flexibility - Since 2020, the VND has achieved two-way fluctuations, allowing for more elastic movements in response to market conditions, with significant depreciation occurring in 2022-2024 [16][25]. - The correlation between the VND and RMB has strengthened, with the VND no longer maintaining stability against the USD during RMB appreciation, but rather following the RMB's movements [25][26]. Group 5: Future Outlook for the VND - The VND has experienced a depreciation trend since February 2025, with a 5.06% depreciation against the USD and approximately 6.85% against the RMB [31][35]. - Key factors influencing the future exchange rate include trade tensions with the US and the Federal Reserve's hawkish stance, which may exert additional pressure on the VND [36][37].