China’s SAFE: Better international monetary coordination is needed to ensure a “fairer” environment
Lu Lei, deputy head of the State Administration of Foreign Exchange (SAFE) urged developed countries to ensure ‘more effective’ monetary coordination in order to create a “fairer” international environment.
Key takeaways
“Countries lying at the core of the international monetary system often have a big say.”
“Powell’s speech indicated the Fed will accelerate its tightening, and global liquidity may face a major test.”
“Given the deep interconnection of financial markets, it could accelerate cross-border [risk] contagion.”
“We should make the monetary policy consultation mechanism more effective. Particularly, we should pay attention to the policy spillovers in major developed economies, to gain a fairer and just international environment for emerging markets and developing countries.”
Market reaction
USD/CNY is trading at 6.3683, down 0.11% on the day, as the yuan remains undeterred by the PBOC’s RRR cut chatters.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
