SVB crisis: U.S. urged to adopt responsible macro policy
BEIJING, Mar. 24 (China Economic Net) - The United States should increase transparency, adopt a responsible macroeconomic policy, and avoid radical policy shifts that may cause serious spillover effects, Foreign Ministry spokesperson Wang Wenbin said on Thursday, as the Silicon Valley Bank(SVB)'s sudden failure has sent tremors around the financial world.
Wang made the remarks in a routine press briefing in response to a media query on Silicon Valley Bank's collapse, adding that China is closely following the relevant developments.
As financial systems around the world are deeply interconnected, problems with U.S. banks by no means impact only the U.S., the spokesperson said.
Wang said that China hopes the U.S. will enhance transparency and strengthen communication with the rest of the world, and provide clarity on widespread concerns of the global community, including the exact size of the risk, steps to address it, ways to minimize its spillove. This is a responsibility and what is expected of the U.S., he said.
“The U.S. dollar is an international currency, and the U.S. monetary policy should not only anchor the domestic economic regulation and control targets, but also carefully evaluate its negative spillover effects”, Wang said.
Wang urged the U.S. to adopt a responsible macroeconomic policy, effectively stabilize market expectations and investor confidence, avoid serious negative spillover effects caused by radical policy adjustments and repeating the mistakes of the 2008 financial crisis.
"We also urge the financial regulatory authorities of relevant countries to take concrete measures to protect the capital safety of all customers, including depositors of all countries," he added.
China is willing to work with other economies to strengthen macroeconomic policy coordination and jointly safeguard international economic and financial stability, Wang said.