ASEAN+3 Macroeconomic Research Office (AMRO) Visits IMI
2017-08-30 IMI
The meeting focused on five topics: “Measures and challenges of capital flow management” “Impact of the introduction of counter-cyclical factors in the quoting RMB exchange rate against the US dollar”“China’s capital market opening and RMB internationalization”“ Impact of the Fed’s rate hike and balance sheet reduction on China’s monetary policy and financial markets”，and “Macro-prudential management and systemic risk prevention”. During the economic consultation, Mr. Wei Benhua stated his opinion on RMB depreciation which is an issue concerned by AMRO. He pointed out that the direction of Chinese opening up and internal reform economic policy will not change. To establish the RMB exchange rate flowing mechanism is a gradual process, it needs a mature market to cooperate. Professor Zhao Xijun believed that, as the PBoC has decreased the weight of US dollar in foreign reserves, the impact of the Fed’s rate hike and balance sheet reduction on China’s monetary policy and financial markets is correspondingly weakened. In addition, Di Dongsheng expressed the view that the RMB exchange rate will show a trend of appreciation in the long term. We should have confidence in the future of RMB. When it comes to the inclusion of A share into MSCI Emerging Markets Benchmark Index, Gang Jianhua stated that this is a positive signal of the Chinese capital market development and a reflection of the importance of China inthe global capital markets. After the meeting, the participants took pictures together. The AMRO delegation expressed appreciation for the participation of IMI researchers in the economic consultation, and showed their expectation for more extensive cooperation and communication in the future.
