Foreign exchange swap market

Foreign exchange swap market

The foreign exchange adjustment market in China is called "foreign exchange adjustment market", that is, outside the official market, the most original foreign exchange market in which enterprises and institutions conduct quota trading and borrowing and lending with each other. In October 1980, the Bank of China opened the foreign exchange adjustment and quota lending business, allowing the retained units to sell or lend idle foreign exchange to the units that need foreign exchange at the price stipulated by the state, so as to realize the surplus and shortage Adjust. Its appearance has played a great role in the development of China's national economy.

Positive impact

Although China's foreign exchange adjustment market is primary and limited, it has played a positive role in promoting the development of the national economy. First of all, by adjusting the surplus and shortage of foreign exchange and making up for the losses of enterprises, the enthusiasm of local governments, departments and enterprises to earn foreign exchange has been mobilized, and the smooth implementation of the foreign trade contract management responsibility system and the stable growth of foreign trade exports have been promoted; secondly, the rational allocation of foreign exchange resources has been promoted, the inclination of national industrial policies has been supported, and the use efficiency of foreign exchange has been improved, It is helpful for foreign-invested enterprises to solve the problem of foreign exchange balance, improve the foreign investment environment to a certain extent, and promote the normal development of foreign-invested enterprises.

adverse effect

Because of the coexistence of the adjustment market and the original official foreign exchange market in China, it is impossible to form an open and unified foreign exchange market, and there is artificial intervention, which is not conducive to China's transition to market economy. At the same time, the existence of the two markets will inevitably lead to the coexistence of the two exchange rates, which does not conform to the relevant provisions of the International Monetary Fund, and is not conducive to the expansion of international economic cooperation.