wu xiaoling : lessons we should learn from the asian financial crisis remarks by ms wu xiaoling, deputy governor of the people ’ s bank of china, at the international seminar on the tenth anniversary of the asian financial crisis, beijing, 21 june 2007. * * * ladies and gentlemen : good morning. it is a great pleasure for me to attend the international seminar on the tenth anniversary of asian financial crisis jointly hosted by the financial research institution of the people ’ s bank of china, institute of world economics and politics of chinese academy of social sciences, and the china business news. please allow me, on behalf of the people ’ s bank of china, to welcome the distinguished guests from the world bank, the international monetary fund and other international institutions, and countries and regions including japan, korea, thailand, malaysia, and indonesia, etc. and experts and scholars from domestic government agencies and institutions. this year marks the tenth anniversary of the asian financial crisis. the world economy has undergone tremendous changes over the past ten years. it is of significance to conduct indepth discussion on policy - making and reform strategies in china ’ s financial opening - up against today ’ s backdrop of global economic imbalance, excess liquidity and increasingly changing financial market. 1. lessons we should learn from the asian financial crisis in july ten years ago, the attack on thai baht by the international hot - money triggered a large scale financial crisis, which severely damaged the economies of thailand, malaysia, indonesia, japan, korea, and china ’ s hongkong sar and taiwan province, and pulled asian countries into an economic and social turmoil. reflecting on the reasons behind asian financial crisis ten years later, we find lessons in many aspects. a country ’ s financial opening - up must suit status quo of its financial system. sound domestic financial system and healthy operations of the enterprises are the micro basis to forestall external shocks, thus we should effectively combine the processes of opening - up and internal reform. an orderly opening - up will help foreign and domestic financial institutions to influence and learn from each other. inefficiently managed opening - up and a fragile banking system will undermine financial stability. more efforts should be made to intensify monitoring on cross - border capital flows, in particular, short term capital flows. the abnormal flow of short - term speculative capital may lead to financial crisis. relevant countries should adopt exchange rate regime best suited its local characteristics. rigid and inflexible exchange rate regime will be an easy target

yi gang : speech at bank of thailand - bank for international settlements conference speech by mr yi gang, governor of the people's bank of china, at the bank of thailand - bank for international settlements conference " central banking amidst shifting ground ", bangkok, 2 december 2022. * * * distinguished governor sethaput suthiwartnarueput, general manager agustan carstens, president christine lagarde, governor philip lowe, governor perry warjiyo, professor raghu rajan, good morning! on behalf of the people's bank of china, i would like to extend my sincere congratulations to the bank of thailand on its 80th anniversary. it gives me great pleasure to speak at this conference. i would like to take this opportunity to say something about growth and inflation. i recall that about one or two years ago, we were still debating whether the inflationary pressure was transitory or entrenched. since the beginning of this year, however, most advanced economies started tightening monetary policies. many central banks are hiking interest rates aggressively at a much faster pace than previous tightening cycles. and also, many emerging markets and low - income countries have seen pressures of local currency depreciation, capital outflows and inflation at the same time. meanwhile, indicators such as mortgage rates and pmis throughout the world show that the likelihood of a slowdown or a recession sometime next year is on the rise. central banks are faced with a delicate balancing act of fighting inflation and keeping the economy growing at the same time. as for china, our cpi right now is about 2 %. this is particularly due to a bumper harvest in grain and stable energy prices. our gas and oil prices follow global trends. our electricity prices have basically been stable since the beginning of the year. looking for next year, the inflation forecast is in the moderate range. china's growth rate, however, is right now somewhat slower than expected due to covid and other factors. our third quarter growth rate is 3. 9 % on a year - on - year basis. but as you see, we have a pretty accommodative monetary policy in place to help with economic recovery and maximize employment. and our focus is growth right now. we recently cut the required reserve ratio ( rrr ) by 25 basis points, and also led the market interest rates lower a little bit. on top of its aggregate dimension, our monetary policy also has a structural side that is providing much needed support to