Macro-finance Salon (No. 122): The Evolution, Landscape and Lessons of the International Financial System

On May 18, the Macro-finance Salon (No. 122) was held at Renmin University of China. Xiao Yuanqi, Chief Risk Officer and office manager of China Banking and Insurance Regulatory Commission, attended the seminar and delivered a speech titled “Evolution, Landscape and Lessons of the International Financial System”. Wei Benhua, Former Deputy Administrator of the State Administration of Foreign Exchange and former IMF Executive Director for China, Zhang Zhixiang, former Director General of the International Department of PBoC and former IMF Executive Director for China, Qu Qiang, Director of the China Financial Policy Research Center, Wang He, Vice President of PICC P&C Insurance, Huang Qing, China Shenhua Group’s Secretary of the Board, Yang Xinchen, Deputy Chief Economist of China Hualu Group, Wang Ziwen, Director of Public Affairs Department of Ant Financial Services, and IMI Researchers Cheng Gengli, Lin Nan, Liu Hongwei, Tian Xinming, Yu Wanwan, Zhen Xinwei, etc. also participated in the salon, which was chaired by Song Ke, the deputy director of IMI. Xiao Yuanqi first introduced briefly the current landscape of the international financial system. He pointed out that the domination of developed countries is the main feature of the current international financial system, in addition to the increasing participation and bigger voice of emerging economies. He also commented on the path and motivation of the financial system reform. Based on the above, Mr. Xiao talked about what we can learn from the evolution of the international financial system. He said that in order to understand and even shape the international financial system, it is necessary to respect the objective rules while take the initiative. We have to strengthen our competitive edges and exert a more positive influence on the international community. Finally, Mr. Xiao Yuanqi stressed the necessity of studying the sustainability of the US dollar system, the international trade and financial system, etc. In the discussion session, Wei Benhua said that we can start by revamping the International Monetary Fund, and subsequently change the landscape of the international financial system. The internationalization of the RMB will be an important driving force in this process. Qu Qiang said that the core of the international financial system should be the monetary system, which is the basis of the financial mechanism, institutions, and governance. The factors that affect market-government balance along with their mechanism and concrete impact should remain to be our current concerns. Zhang Zhixiang focuses on the basic role of national economic strength and the mechanism of domestic regulation. Concerning the multi-target regulation of China, it is necessary to constantly improve the transmission mechanism and take into account other objectives on the basis of controlling risks.

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