and deepened financial reforms to facilitate high - level opening - up. in fulfilling the duties of the fsdc office, we further strengthened the coordination of financial regulation, advanced the market - based reform of interest rates and rmb exchange rate, kept improving the framework of macroprudential regulation, enhanced the quality and efficiency of financial services and rolled out a series of measures to facilitate trade and investment. furthermore, we sped up the implementation of unveiled measures for financial opening - up and made remarkable achievements in international exchanges and cooperation. propelled by financial reform and opening - up, we forged ahead on the way to win the three critical battles. to be specific, we made efforts to forestall and defuse major financial risks and put up a robust financial safety net ; we provided financial support for targeted poverty alleviation to ensure that no one is left behind on the way towards a moderately prosperous society in all respects ; and we fostered a green finance system to act on the principle that “ lucid waters and lush mountains are invaluable assets ”. while making solid progress in our work, we also cared for the physical health and mental wellbeing of our staff members and the growth of young colleagues, as health is the foundation of everything. during the combat against the pandemic, we were not only concerned about the safety of those on the frontline, but also paid close attention to the health of all staff members. we required pbc branches, sub - branches and institutions at all levels to provide anti - pandemic supplies and put in place a mix of strict prevention and control measures, so as to defend all staff members against the pandemic. to our delight, in the face of the pandemic, our young colleagues have kept firmly in mind the instructions and expectations of general secretary xi jinping for them to take on heavy duties in the face of difficulties and meet the most urgent needs of the party and the people. you have lived up to our expectations. we have seen your potentials. we are proud of you! winter will eventually pass, and spring is sure to come. as the year of 2021 marks the commencement of the 14th five - year plan period, we will embark on a new course of building a modern socialist country in all respects. we will renew our efforts at a new starting point. we should unite around the cpc central committee with comrade xi jinping at the core, continuously enhance the “ awareness of maintaining political integrity, thinking in big -

since 2001, foreign exchange supply and demand has improved, facilitating trade and investment, and making the holding and use of foreign currency more convenient. the role of supply and demand is becoming increasingly important in the foreign exchange market. 3. the foreign exchange market mechanism has improved. before 1994, the rmb exchange rate was determined both by the authority and the swap market. now it is determined in the interbank foreign exchange market through otc transactions and supported by market makers. as the foreign exchange market grows rapidly, the role of market participants in determining the exchange rate central parity has been increasing. in response to the diversified trade and investment structure, the exchange rate regime is with reference to a basket of currencies, rather than pegging to the us dollar. iii. a managed floating exchange rate regime is in china ’ s long - term and fundamental interests and we will continue to implement the regime adopting a managed floating exchange rate regime is an inevitable choice for china to deepen reform and opening - up, and adapt to the new pattern of development and openingup after china ’ s accession into the wto. in line with the scientific approach to development, this is a choice consistent with china ’ s economic development level, improvement in marketbased institutional arrangements and financial regulation and enhanced resilience of the corporate sector. continued efforts will be made to implement the regime. 1. the regime is essential for economic restructuring and the optimization of resource allocation. exchange rate represents the price relations between tradable and non - tradable goods and services. a fixed exchange rate may make accounting and risk management easier for market participants for some time, but if misaligned with the fundamentals of supply and demand for too long a time, such a regime will distort relative prices on domestic and foreign markets, undermine the efficiency of resource allocation and accumulate domestic and foreign economic imbalances. a managed floating exchange rate regime will enhance the efficiency of resource allocation, adjust the relation between domestic and foreign prices in a flexible manner, channel resources to the sectors that are driven by domestic demand such as the services sector, promote industrial upgrading, transform the pattern of economic development, reduce trade imbalances and over - reliance on export, enable domestic demand to play a more important role in economic development and thus promote sustainable and balanced economic growth. 2. we need such a regime to strengthen and improve macroeconomic policymaking. since the beginning of the reform and opening - up and especially since the entry into the