China has the foundation and conditions to adapt to policy adjustments by the U.S. Federal Reser...
China has the foundation and conditions to adapt to policy adjustments by the U.S. Federal Reserve as the country's foreign exchange market has shown increasing resilience in recent years, an official said Friday.
A Fed interest rate hike is indeed an important external variable for an economy's balance of payments and cross-border capital flows, Wang Chunying, deputy head of the State Administration of Foreign Exchange, told a press conference.
But the fundamental factor is still the economy's market foundation, Wang noted.
The Chinese market will continue to be attractive for investors as the country's economy generally keeps running within a reasonable range, and its stable and sound fundamentals will be unchanged in the medium to long term, she said.
Meanwhile, the basic international payments surplus, such as the current account and direct investments, will remain at a certain scale and play a role in stabilizing cross-border capital flows, said Wang.
China's external asset and liability structure has been improving, and the foreign debt risk is relatively low while the foreign exchange reserve ranks first in the world, enabling the country to adapt well to external changes, Wang said.
Also, Wang noted that the renminbi exchange rate has become more flexible in recent years, relieving external pressure promptly and effectively.
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Looking ahead, the administration will keep a close eye on the Fed's policy adjustments and make real-time assessments to maintain a stable forex market, according to Wang. Source: Newsctgn...
