From the viewpoint of people’s confidence in a central bank, it is most important that the financial assets the Bank holds are adequate to secure the banknotes issued. This adequacy, I believe, involves two specific points.
The tapering of the US quantitative easing and the shock of international oil price caused a destabilizing force to the emerging economies that are fundamentally sustained by domestic demands well-formulated monetary policy. The growth in the capital market has also been challenged by the oil price decline and low interest policy in the advanced market. 7.