Huo Yingli: We have observed increased linkages between local and foreign currencies under the “dual circulation” context.
June 15,2021

  On June 11, the sessionon "The New Role of RMBandGlobal Resource Allocation inthe Context of 'Dual Circulation'"of the 13th Lujiazui Forum (2021) was held in Shanghai. Huo Yingli, Party Secretary of China Foreign Exchange Trade System, attended and addressed the forum.

  According to Huo, the key to fostering a new development paradigm lies in unimpededeconomic circulation. This requires a robust domestic economic circulation and stable fundamentals. Finance is the bloodline serving the real economy.Especially against the backdrop ofthe "dual circulation" pattern, the key to connecting the internal and external circulationsis the smooth flow of capital.

  "Under the dual circulation pattern, we have also noticed that the linkages between local and foreign currencies have increased, which isfully evidenced by market transactions. In our foreign exchange market, about 20% of the participants are from foreign institutions. Quite someforeign institutions tradefirst in the foreign exchange market and then move directly to bond and stock trading." Huo added.