China should restructure the balance sheet of the central bank to deal with the
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Song Huizhong, deputy governor of Shenyang branch of the Central Bank of China, said that the policies and measures adopted by the Fed will have some spillover effects on China's economic and financial development, and further challenge the central bank's monetary policy and balance sheet management. The structure of the balance sheet of the central bank should be restructured in a global perspective.
This paper Chinese Financial Times published Monday and said the optimal combination and the term structure of monetary policy tools to maintain control of the flow of the initiative and prevent financial risks; improve the level of internationalization of the RMB, increase the central bank balance sheet stability; the central bank balance sheet management into macro Prudential policy framework to effectively prevent systemic risk.
"The Fed's shrinking list will bring great challenges to the management of foreign exchange assets of our central bank," the article said, which put forward higher requirements for our central bank's balance sheet tools.
From the balance sheet of the Central Bank of China, at the end of 7 2017, the balance of foreign exchange assets was 21 trillion and 500 billion yuan, which contained about 1 trillion and 110 billion U. S. treasury bonds. After deducting US Treasury bonds and other foreign exchange assets, part of the foreign exchange assets corresponds to the part of the Federal Reserve's currency and deposits.
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