An officer with the International Monetary Fund claimed that China could serve as an example in battling with the pandemic in terms of economic recovery. An officer with the People's Bank of China (PBOC) also stated in a press conference that China is contributing to global financial stability and continue to participate in international discussions for macroeconomic policy coordination.
China has been perceived as a stabilizing force in terms of economically recovering from the pandemic. China mission chief and assistant director in the Asia and Pacific Department of the International Monetary Fund Helge Berger claimed that China serves as a good example for other nations in recovering from financial troubles.
He noted that while the crisis is still ongoing in the country, China has demonstrated the importance of policymakers to establish strategies when economic growth would be adversely affected by unexpected factors. He also added that global economies should also take cognizance of these measures.
The US Treasury has been yielding record lows and a global recession might occur. The report revealed that major stock indexes have decreased significantly last February and subsequently fell by Friday, its worst performance since the 2008 financial crisis.
In comparison, the S&P 500 index dropped by 29 percent for the year but the Shanghai composite index only fell by 10 percent. It was also shown that China's stock and bond markets are the second largest in the world.
Hence, the vice governor with the People's Bank of China (PBOC) Chen Yulu claimed that its volume allowed the country to maintain its financial stability. In turn, China's stability also caused the same for the global financial market.
Chen also revealed that stabilizing Chinese markets is just one of the two plans that the State Council's finance committee would prioritize. The other measures that the Chinese government would focus on is international coordination of macroeconomic policies. This includes participation in assisting developing countries that have been severely hit by the adverse effects of the pandemic.
Chen added that the PBOC exerted efforts in reporting the impacts of the virus and suggesting effective response measures to central banks of G20 countries. China has also been extending help to international financial institutions.
He also revealed that the PBOC's governor Yi Gang has conversed with International Monetary Fund President Kristalina Georgieva, US Federal Reserve Chairman Jerome Powell, and Bank of International Settlements General Manager Agustin Carstens in establishing monetary policies relevant to the situation.
