It has not only facilitated the Chinese consumers to travel and spend abroad, but also exerted great impact on the development of relevant industries. Fourth is the anti-money laundering system. Needless to say, money-laundering is harmful to sustained social and economic development and the sound performance of financial institutions.
The best that emerging-market central banks can do is to be ready to respond to any potential negative side-effects on either price or financial stability. Some factors may play in our favour: because of the Fed’s concern about generating undue volatility in global financial markets, the general framework of future normalisation has been clearly laid out and, hopefully, well understood by markets.