1. Consolidate the micro foundation and improve the macro environment. Accelerate the reform of state-owned enterprises, vigorously develop the private economy and establish a competitive modern enterprise system; Accelerate the shareholding system reform of commercial banks, improve the risk control ability of banks and optimize the foreign exchange trading behavior of commercial banks; Strengthen bank supervision and guard against financial risks; Promote institutional innovation and product innovation in the money market and the capital market to achieve coordinated development with the foreign exchange market; Accelerate the process of interest rate marketization and promote the formation of a market-oriented benchmark interest rate system; Improve the RMB exchange rate formation mechanism and steadily promote the RMB convertibility process; Establish and improve the supporting laws and regulations for the development of the foreign exchange market, restrain the behavior of trading subjects, and ensure the healthy development of the foreign exchange market.
2. Increase investment in product innovation. The diversification of trading varieties in the market can not only ensure that the exchange rate formation process reflects the reality and potential supply and demand relationship, but also provide a variety of hedging tools for market trading entities. In addition to improving existing products and businesses, we should also strengthen product research and development strength and capital investment, and conduct demand research, demonstration, promotion and development of new products and businesses.
3. Enhance the liquidity of the foreign exchange market. A product with good liquidity will attract more subjects to participate in the transaction, and the participation of subjects will in turn increase the liquidity of the product. Judging from the current foreign exchange market environment in China, improving market liquidity is an important link to promote the development of the foreign exchange market.
4. Change the role of the central bank in the foreign exchange market. As an important driving force for the development of the foreign exchange market, the central bank
Force, should gradually reduce the continuous direct intervention in the foreign exchange market, only on the basis of a comprehensive grasp of market transaction information, through the influence of market participants such as commercial banks to intervene indirectly, can be conducive to the development of the foreign exchange market.
5. Increase the number of trading entities in the foreign exchange market. First of all, commercial banks are the main participants in the foreign exchange market, so we should improve the market participation of competitive commercial banks, change the absolute dominant position of a few big banks in the foreign exchange market and promote fair competition. Secondly, many small and medium-sized financial institutions have a sound risk management system and a good organizational management mechanism, which is another driving force for the development of the foreign exchange market. Expand investment channels and improve the trading enthusiasm of small and medium-sized financial institutions in the foreign exchange market. We can introduce the cross quotation of USD/EUR, or change the existing quotation method, unify the benchmark price of four currencies into the benchmark price of USD, and then arbitrage. This can provide a fair market environment for small and medium-sized financial institutions, change their passive position, enhance their activity in the foreign exchange market and further improve the operating mechanism of the foreign exchange market. Thirdly, non-financial enterprises should be gradually allowed to enter the foreign exchange market to engage in trading activities, continuously inject new vitality into the foreign exchange market, enhance the breadth of the foreign exchange market and promote its development.
6. Strengthen the construction of credit system and supervision efficiency. Establish a complete credit database as soon as possible, and evaluate the credit status of trading entities according to their assets and liabilities, business performance, credit records and other information, so as to prevent credit risks and ensure the steady development of the market.
Strengthen the market information disclosure mechanism and improve the transparency of the foreign exchange market. Strengthen the early warning and evaluation of market risks and improve the market self-discipline mechanism. Establish an effective electronic supervision system to improve supervision efficiency and reduce supervision cost. The central bank should continue to supervise the behavior of the trading subjects in the foreign exchange market, assume the responsibility of preventing systemic financial risks and ensure the stability of the financial system. Regulators should treat different trading entities fairly and not allow any trading entity to enjoy special treatment, so as to create a fair and competitive market environment for the development of the foreign exchange market.
7. Establish a foreign exchange market that combines real transactions with financial transactions. At present, China's inter-bank foreign exchange market mainly cooperates with designated foreign exchange banks under the foreign exchange settlement and sale system to balance the positions arising from foreign exchange settlement and sale transactions. Commercial banks do not buy and sell foreign exchange in the foreign exchange market for profit, but only fulfill the provisions of the State Administration of Foreign Exchange on the management of turnover positions in foreign exchange settlement and sale. This obviously violates the profit principle of commercial banks and does not meet the development requirements of marketization. In fact, when trading in the foreign exchange market, the essential demand tends to decline and the financial demand tends to rise. Therefore, we should gradually reform the current foreign exchange settlement and sale system and expand financial transactions in the foreign exchange market, which will help improve the activity of the foreign exchange market and expand the scale of transactions.
8. Establish decentralized trading centers and independent clearing institutions. The development trend of foreign exchange market trading is to gradually adopt the form of long-distance OTC market, and the trading subjects will obtain market information and trade through computers. Therefore, the current foreign exchange trading center will eventually develop into a decentralized intangible market, and China is gradually promoting the formation of a decentralized foreign exchange trading market. At present, centralized liquidation is risky and does not conform to international practice. The clearing institution should develop into an independent commercial entity, no longer subordinate to the central bank, and operate according to the basic rules of the market economy. On the one hand, it can make the foreign exchange trading center get rid of the liquidation risk, on the other hand, it can also restrain the trading subjects to control their own business risks, so as to achieve the purpose of perfecting and developing the foreign exchange market.