Pan Gongsheng: the depreciation of the currencies of emerging economies during the downward phase of the global financial cycle is relatively small. Pan Gongsheng, director of the State Administration of Foreign Exchange, said at the Lujiazui Forum on June 8 that some emerging economies with fragile economic fundamentals and high dependence on external financing often face greater risks of external shocks. Since 2022, the financial conditions of the United States have tightened rapidly, the global financial cycle has entered a downward period, and emerging economies are once again facing pressure such as currency depreciation. But with the rapid rise in the dollar index, the depreciation of currencies in emerging economies has been relatively small this time, mainly for three reasons. First, emerging economies' foreign exchange reserves continue to grow, with a thicker cushion against capital outflows. Second, the central banks of many emerging economies have won the initiative by starting the cycle of raising interest rates ahead of the Federal Reserve. Third, commodity-exporting emerging economies have been boosted by rising global commodity prices. However, some emerging economies with weak economic strength and high dependence on external financing still face greater pressure to repay their debts. (reporter Wang Hong and Xu Chuan)