Ding Zhijie, assistant to the president of the w88 casino:

Reducing foreign reserves will make you healthier

(Source: "Economic Daily"2015Year9month8Day5Version Reporter: Chen Guojing）

As the global economic growth slows down and the Federal Reserve approaches to raise interest rates, global capital flows have reversed. Data from the International Monetary Fund shows that from2014Mid-year arrival2015During the end of the first quarter of this year, the foreign exchange reserves of emerging markets have increased from the middle of last year11.98Trillion dollar peak, down to11.43Trillions of dollars.

Ding Zhijie, assistant to the president of the w88 casino, said in an interview with a reporter from the Economic Daily that the decline in foreign exchange reserves should be viewed calmly, and at the same time, attention should be paid to guarding against risks that may be caused by expected changes.

“Reducing foreign exchange reserves is healthier.” Ding Zhijie believes that in the early stage, some developed countries implemented quantitative easing policies, which released a large amount of liquidity to the world, mostly flowing to emerging markets, causing the foreign exchange reserves of emerging market countries to grow rapidly. The accumulation of foreign exchange reserves enables emerging countries to rely on foreign exchange reserves to withstand risks when capital flows reverse.

As far as my country is concerned, Ding Zhijie said that most of my country’s foreign exchange reserves are formed by capital inflows, and the excessive growth of foreign exchange reserves is not entirely a good thing. The income from China's foreign reserve assets is far less than that of foreign investors holding assets in my country10%The yield level around. At the same time, the continued and substantial growth of foreign exchange reserves has led to a significant reduction in my country's autonomy in the release of base currency.

“Overall, the decline in foreign exchange reserves is not a bad thing.” Ding Zhijie said, “The adjustment of foreign exchange reserves has opened up space for my country’s monetary policy, and it is beneficial to be able to proactively use monetary policy tools to deal with problems in economic development.”

Ding Zhijie reminds us to pay attention to the risks brought by expected changes. In the past, the market was accustomed to the continuous increase of my country's foreign exchange reserves. At present, it continues4After a monthly decline, its negative impact may be over-interpreted and exaggerated by the market. Therefore, it is necessary to strengthen expectation management and provide reasonable guidance to avoid unnecessary panic.

Attachment: Original link:

http://paper.ce.cn/jjrb/html/2015-09/08/content_255921.htm

http://www.ce.cn/xwzx/gnsz/gdxw/201509/08/t20150908_6418993.shtml

Reprinted by People’s Daily Online:

http://politics.people.com.cn/n/2015/0908/c70731-27554079.html