[Pan Gongsheng: Gradually Enhance the Role of Government Bond Trading in Liquidity Management While Maintaining Exchange Rate Flexibility and Preventing Exchange Rate Overshooting Risks] Jin10 News, January 22 – Pan Gongsheng, Governor of the People's Bank of China, stated in an interview that the central bank will improve a short-, medium-, and long-term coordinated base money supply mechanism with Chinese characteristics, gradually enhancing the role of government bond trading in liquidity management to maintain ample liquidity in the banking system. The structural monetary policy tools system will be improved to better guide and incentivize financial institutions to optimize loan allocation and effectively address the 'five key financial tasks.' The RMB exchange rate formation mechanism will also be refined, adhering to the decisive role of the market in exchange rate formation, maintaining exchange rate flexibility, and simultaneously preventing the risk of exchange rate overshooting.