News Snapshot:
China’s advanced economy and the flexibility of its yuan exchange rate leave it well placed to absorb shocks from policy tightening by the US Federal Reserve , including hot money flows out of the country, the nation’s currency regulator has said. The assurance from China’s State Administration of Foreign Exchange (SAFE) comes as the Federal Reserve inches closer to reducing monthly asset purchases and, possibly in 2023, raising interest rates. The prospect of US monetary tightening has evoked memories of the Federal Reserve’s policy moves in 2013, which resulted in investor flight from emerging markets and a depreciation of the...
