Wang Chunying: Under the Fed’s current round of easing policies, China has not accumulated excessive external debt

　　China News Service, Beijing, April 23 (Reporter Xia Bin) In the context of the current stabilization of the US economy and rising inflation expectations, the market is worried that the Fed will end its loose monetary policy early.

What impact will the Fed's monetary policy adjustment have on China's balance of payments and foreign exchange market situation?

　　Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said at a press conference in Beijing on the 23rd that from the perspective of the domestic foreign exchange market, under the Fed’s loose monetary policy, China did not accumulate excessive external debt. Market risk mitigation capabilities are constantly improving.

"It should be said that we still have the conditions to keep the balance of payments and the foreign exchange market in balance."

　　Wang Chunying pointed out that from the perspective of the RMB exchange rate, the increased flexibility of the RMB exchange rate can effectively release market pressure, which is more conducive to restraining the accumulation of unilateral appreciation and devaluation, which helps to form a benign relationship between market exchange rate adjustment and transaction behavior. cycle.

"Regardless of whether we look at the foreign exchange forward market or the options market, since the Fed's large-scale loose monetary policy last year, the indicators for measuring expectations have been relatively stable."

　　At the same time, from the perspective of external debt, China has not accumulated a large external debt risk; from the perspective of balance of payments, its own "firewall" is relatively strong, such as the current account and direct investment maintaining a relatively stable surplus, and the private sector's external assets further Accumulation, these have provided more resources for China to resist external shocks.

　　Wang Chunying also emphasized that the fundamentals of the domestic economy have remained sound, the financial market has opened up steadily, and the maturity of the foreign exchange market has continued to increase. These factors are actually a very solid foundation for China to respond to and adapt to external shocks or challenges.

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