yi gang : keynote speech - 13th lujiazui forum keynote speech by mr yi gang, governor of the people's bank of china, at the 13th lujiazui forum, shanghei, 10 june 2021. * * * honorable secretary li qiang, mayor gong zheng, vice mayor wu qing, chairman guo shuqing, chairman yi huiman, administrator pan gongsheng, ladies and gentlemen, good morning! as the co - chair of the forum, i would like to extend warm welcome to all distinguished guests and friends attending the 13th lujiazui forum. lujiazui forum has been held 12 times. it has stood witness to the progress of china ’ s financial sector and the rapid development of shanghai as an international financial center. china ’ s financial sector has provided strong support to covid - 19 response since last year and served as a backstop to china ’ s fast economic recovery. the development of shanghai as an international financial center has also seen new progress. for instance, the first wholly foreignowned life insurance firm and public equity fund, as well as the first foreign - controlled wealth management firm have been established in shanghai ; the first domestic interest rate options and a number of new globally - traded futures products have been launched here ; shanghai is also one of the frontrunners in the pilot regulation on fintech innovation ; and over 900 overseas institutions have entered china ’ s interbank market, with total bond holdings hitting rmb3. 3 trillion. we are pleased to note that shanghai has ranked the third among all international financial centers in the world for two consecutive times. i would like to congratulate shanghai on this remarkable achievement on behalf of the pboc. this year, the forum focuses on major issues such as financial support for peaking carbon emissions and achieving carbon neutrality, scientific and technological innovation, the well - being of the people and the opening - up of the financial sector. they are all important issues for the financial system as we set out to implement the new concepts of innovative, coordinated, green, open and shared development. they will go a long way in building a new development paradigm and achieving high - quality economic development. today, i would like to take this opportunity to share with you my observations on the monetary policy, green finance and inclusive finance. as china enters a new era of development, its demographic, resource, industrial and regional structures are all undergoing profound adjustments, which in turn, will have an impact on potential economic growth and

to 10, 0 per cent and receded to 6, 3 per cent in august 2003. cpix is expected to recede to within the target range in the immediate ( before december 2003 ) future. the exchange rate of the rand has shown large swings over the past five years. in 1998 the exchange rate of the rand averaged r5, 53 to the us dollar. on 28 august 1998 ( with the russian default on their debt signalling what was probably one of the worst moments in the emerging - markets crisis ) it reached its weakest point during that year of r6, 67 per dollar. after a period of relative stability in 1999 and 2000, a sharp depreciation in the exchange rate of the rand occurred during the second half of 2001. during that period the nominal effective exchange rate of rand depreciated by 34 per cent, before recovering early in 2002. subsequently the rand has been remarkably steady, and for the eight months january to august 2003 the average exchange rate of the rand amounts to r7, 90 per us dollar. the elimination of the oversold nofp was the bank ’ s third major policy challenge over the past five years. the bank ’ s latest annual economic report mentions that “ a milestone was reached on 16 may 2003 when the nofp of the reserve bank recorded its first - ever positive balance, having been in an oversold dollar position of more than us $ 23 billion as recently as 1998 ”. this remarkable achievement has received surprising little media coverage, but allows the bank a shift in focus to the reduction of its oversold forward book and increasing the official foreign exchange reserves position. the fourth policy issue, namely the responsibility for banking supervision, has also seen a number of developments. with the performance of this function come also a number of responsibilities. this was evidenced by events early in 2002, when satisfactory solutions had to be found for the financial difficulties experienced by a number of smaller banks and two relatively large ones ( saambou bank and boe bank ). in the event the sarb acted in accordance with international best practice and successfully avoided systemic risk and panic about the soundness of the south african banking sector. commercial banks have an extremely important role to play in maintaining financial stability in any economy. financial stability is extremely fickle, and unfortunately often more easily lost than restored. no central bank can maintain or restore the public ’ s trust in the financial system without the cooperation of commercial banks and the public. it should always be remembered that the central