The People's Bank of China released its first quarter 2024 report on the implementation of China's monetary policy on May 10th. The report shows that China's current economic development faces both strategic opportunities and risks and challenges. The global economic recovery momentum is divided, and uncertainties such as monetary policy adjustments and geopolitical conflicts in developed economies still exist. The sustained recovery of the domestic economy still faces many challenges. It should also be noted that China's economic foundation is stable, with many advantages, strong resilience, and great potential. A good start and a positive recovery are the basic characteristics and trends of the current economic operation. We need to enhance confidence in doing a good job in economic work. The report clearly states that in the next stage, the People's Bank of China will fully implement the spirit of the Central Economic Work Conference and the Central Financial Work Conference, adhere to the overall tone of seeking progress while maintaining stability, fully and accurately implement the new development concept, firmly follow the path of financial development with Chinese characteristics, accelerate the construction of a strong financial country, build a modern central banking system, and focus on promoting high-quality development. Maintain the stability of monetary policy, enhance the consistency of macroeconomic policy orientation, strengthen countercyclical and cross cyclical adjustments, increase support for the real economy, and effectively consolidate and enhance the positive trend of economic recovery. The report proposes that a prudent monetary policy should be flexible, moderate, precise, and effective. Reasonably grasp the relationship between the two largest financing markets of bonds and credit, guide the rational growth and balanced allocation of credit, maintain reasonable and sufficient liquidity, and match the expected goals of social financing scale and money supply with economic growth and price levels. Taking maintaining price stability and promoting moderate price recovery as important considerations for grasping monetary policy, strengthening policy coordination and cooperation, and maintaining prices at a reasonable level. We will continue to deepen the market-oriented reform of interest rates, leverage the mechanisms of loan market quotation interest rate reform and deposit interest rate marketization adjustment, and promote the stable and moderate reduction of enterprise financing and resident credit costs. Adhere to focusing on key areas, being reasonable and moderate, with progress and retreat, and provide effective support for key areas and weak links such as inclusive finance, technological innovation, and green development. Smooth the transmission mechanism of monetary policy and avoid the accumulation and idle transfer of funds. We will adhere to a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies for adjustment, and leverage the decisive role of the market in exchange rate formation. We will comprehensively implement policies and stabilize expectations, resolutely correct pro cyclical behavior, prevent the market from forming unilateral expectations and self strengthening, resolutely prevent the risk of exchange rate overshoot, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Continuously and effectively prevent and resolve risks in key areas, and firmly guard against the bottom line of systemic risks. (Lai Xin She)