1. In the foreign exchange market, the compulsory settlement and sale of foreign exchange system forced enterprises to settle foreign exchange in banks according to the required proportion, which led to unconditional foreign exchange supply and conditional foreign exchange demand in the foreign exchange market, exaggerated the pressure of RMB appreciation, but concealed the pressure of RMB depreciation, resulting in a false situation of oversupply in the market.
2. From the perspective of monetary policy operation, under the compulsory foreign exchange settlement and sale system, the central bank needs to continuously buy foreign exchange sold by commercial banks, which will bring about the continuous growth of foreign exchange reserves and the launch of base currency.
3. In order to prevent the continuous release of base money from bringing excess liquidity and inflationary pressure to the domestic economy, the central bank needs to continuously recover funds through open market operations, which greatly restricts the independence of the central bank's monetary policy.
Extended data:
1. The purpose of implementing the foreign exchange settlement system is to remit the foreign exchange income of Chinese enterprises into foreign exchange reserves in time and in full, so as to provide guarantee for foreign exchange payment. Usually, when the scale of foreign exchange reserves is small, compulsory foreign exchange settlement is mainly adopted; With the lifting of foreign exchange bottleneck, the willingness to settle foreign exchange is more in line with the needs of indirect management.
2. According to the current situation of China's foreign exchange receipts and payments, China adopts two ways at the same time: compulsory foreign exchange settlement and quota foreign exchange settlement, that is, compulsory foreign exchange settlement of current account foreign exchange income of general Chinese-funded enterprises, while Chinese-funded enterprises and foreign-invested enterprises with a certain annual import and export volume and registered capital can open foreign exchange accounts for quota foreign exchange settlement.
3. Under the bank settlement system, especially under the compulsory settlement system, designated foreign exchange banks passively buy foreign exchange from enterprises and individuals, unable to choose the currency and quantity of foreign exchange, and the resulting foreign exchange positions are particularly vulnerable to foreign exchange risks.
References:
Baidu encyclopedia-compulsory foreign exchange settlement and sale system