10. The Revolution of Foreign Exchange Management System and the Development of Foreign Exchange Market

Since the beginning of the reform and opening up, with the rapid development of China’s socio-economy, the existing foreign exchange management system has become inadequate to meet the demands of the new socio-economic situation. In response to the trend of economic development, the Chinese government separated the foreign exchange management agency from the People’s Bank of China (PBOC) and established the State Administration of Foreign Exchange (SAFE). Foreign exchange management gradually shifted from government intervention to market regulation. During this period, the Chinese foreign exchange market began to take shape, fostering a positive interaction among various market participants in the financial sector, thereby contributing to the healthy and sustainable development of China’s economy in areas such as foreign trade and investment.