China'S Prudent Monetary Policy Is About To Be Implemented.

In April 16, 2016, the thirty-third international monetary and Financial Committee (IMFC) meeting was held in Washington. The conference focused on global economic and financial situation and risks, global policy agenda and IMF reform.

The president of the people's Bank of China, Zhou Xiaochuan, led a delegation to the meeting.

The meeting pointed out that the global economy continued to moderate recovery, but the growth prospects weakened, and financial market volatility and risk aversion increased.

Economic recovery in developed economies is constrained by weak demand, slow growth in labour productivity and problems left over by the crisis.

Although emerging markets and developing countries remain the main drivers of global growth, economic growth has slowed down.

The global economy is also facing downside risks such as slowing capital flows, geopolitical conflicts, refugee crises and Britain's departure from Europe.

For this reason, a strong and balanced policy combination is needed to enhance the actual and potential growth rate, maintain financial stability, avoid deflation risks, and improve policy communication.

Specifically, all countries should adopt fiscal policies conducive to growth. The developed countries with negative output gap and lower inflation target should continue to implement the loose monetary policy. At the same time, they should be alert to the risks faced by financial stability. However, monetary policy alone can not achieve balance and sustainable growth. Therefore, other policies must be complemented; all countries should continue to promote structural reforms; implement financial reforms that have reached consensus in a timely and comprehensive manner, and strengthen global cooperation.

The Conference welcomed the implementation of the fourteenth total share inspection, and urged the board to take prompt action to ensure that the fifteenth total inspection will be completed in time before the 2017 annual meeting, including the formation of a new one.

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The fifteenth share total inspection should further increase the share of the dynamic economy, thus reflecting its relative position in the world economy. The possible result is the overall increase in the share of emerging markets and developing countries.

The meeting held that the IMF is at the core position in the global financial safety net. A strong and consistent global financial safety net is very important for the effective operation of the international monetary system. It calls on the fund to continue to strengthen its cooperation with the regional security net.

IMF will discuss the issue of SDR and SDR reporting official reserves, and support the study of the possible expansion of SDR.

President Zhou Xiaochuan appealed to all parties to take comprehensive and effective measures to promote

Revival and enhance the ability to resist risks.

He stressed that under the background of deepening economic and financial globalization, multilateral cooperation is urgently needed.

All sides should strengthen global macroeconomic policy coordination, avoid various forms of trade and investment protectionism, and jointly promote the strong global economy.

Balanced growth.

President Zhou Xiaochuan said that China's economy started well this year, especially in March, compared with 1-2 months.

With the rapid growth of the economy entering the "new normal", the structure and quality of China's economic growth have been improving, for example, the growth rate of the service industry is still higher than that of the manufacturing industry.

China will implement prudent monetary policy flexibly and moderately, and maintain a reasonable and abundant liquidity.

Recently, the foreign exchange market has stabilized, and the renminbi has maintained a basically stable exchange rate for a basket of currencies.

China will vigorously promote the structural reform of the supply side, and better balance the relationship between the three economic growth, structural adjustment and risk prevention, so as to achieve sustained and stable economic development.

Financial reform will also continue to advance. China is confident that it will identify and resolve potential risks in a timely manner and maintain China's economic and financial stability.

President Zhou Xiaochuan pointed out that the fifteenth total inspection should further enhance the representation of the dynamic emerging markets and developing economies in order to better reflect their role in the global economic structure.

We should ensure the adequacy and effectiveness of the global financial safety net, including enhancing the core role of the IMF in the global financial safety net, improving the lending tools of the IMF, and giving better play to other elements such as the regional safety net.

SDR has the potential to solve the defects and contradictions in the current international monetary system. We should start from now and expand the use of SDR step by step, including SDR as the reporting currency and the SDR value asset market.

We expect the IMF to conduct in-depth research this year on enhancing the role of SDR.