Such enhancements help align the incentives for policy action by other players with those of us, monetary policymakers. This is helpful for monetary policy in two ways. First, it reduces the likelihood of adverse shocks hitting the economy to which monetary policy would need to respond.
The trade surplus is estimated to be over $ 100 billion this year. There is also $ 40 billion of foreign direct investment. The supply of foreign exchange exceeds demand and the exchange rate of the renminbi remains stable. Moreover, the renminbi has become fully convertible in the current account.