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Li Keqiang Meets with Managing Director Christine Lagarde of IMF

On March 21, 2016, Premier Li Keqiang met at the Great Hall of the People with Managing Director Christine Lagarde of the International Monetary Fund (IMF) who was visiting China to attend the 2016 annual conference of the China Development Forum (CDF).

Li Keqiang congratulated Christine Lagarde on her reelection as Managing Director of the IMF. He said that at present the global economy is facing increasing uncertain and unstable factors. Major economies need to strengthen macro-policy coordination, maintain and promote the stability of the global financial system. The Chinese government attaches importance to conducting good communication with the market, pays attention to the role of and advice from the IMF and other major international economic and financial institutions, and stands ready to further strengthen dialogues and cooperation, so as to release more signals which can help boost market confidence and contribute to stability and growth.

When talking about the financial market policy, Li Keqiang pointed out that China does not favor global "currency wars" which only bring harm to the global economic recovery. Also, we will not depreciate RMB to stimulate exports on our own initiative, because such depreciation is not conducive to China's economic transformation and upgrading. China will keep carrying out the financial marketization reform and the legal system construction, adhere to the principles of initiative, gradualness and controllability, and steadily promote the reform of the exchange rate formation mechanism of RMB. In accordance with the demands of China's economic fundamentals and financial stability, we will ensure that RMB exchange rate fluctuate in both directions within a reasonable range and keep it basically stable at a reasonable and balanced level.

Li Keqiang emphasized that many big commercial banks in China are state-owned. The Chinese government, especially the central finance, has relatively low debt ratio and the household saving ratio is relatively high. Marketization the central finance can keep the banks' capital adequacy ratios at a high level. The People's Bank of China also has plenty of ways to guard against financial risks. China is able to prevent regional or systematic financial crisis from happening.

Christine Lagarde congratulated China on its successful convention of the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) and expressed that China's "13th Five-Year Plan" has attracted great attention from the international community, which is helpful for China's economy to continue playing a leading role in the development of world economy. Recently China has obtained fruitful results from strengthening policy communication with other nations on issues such as the RMB exchange rate, vigorously enhancing the confidence of international market. The IMF appreciates China's persistence in deepening reform, and stands ready to enhance communication and cooperation with China so as to continue to send out positive signals to the market.

Zhou Xiaochuan attended the meeting.

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