As I mentioned earlier, however, long-term interest rates around the world have fallen in recent years, partly because of the exchange rate policies of some emerging markets. There are several other possible explanations for this phenomenon, including the balance of private savings and investment in emerging-market economies, itself the product of the economic policies in these countries.
Reforming the RMB exchange rate regime has also made progress. China remains committed to market based reforms, which we believe are essential for improving the managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. The People’s Bank has largely phased out regular interventions in the foreign exchange market, and the RMB has become more flexible.