No, and no. China's foreign exchange reserves will remain balanced. The two-way opening of the capital market will attract more foreign fund inflows. As the strong dollar cycle draws to a close, the depreciation pressures on the redback against the dollar will decrease this year.
The central bank's monetary policy committee proposed a slew of monetary policy tools at its fourth quarterly meeting last year to stabilize the yuan exchange rate at a stable, reasonable level and to maintain an equilibrium between interest rates, exchange rates and the balance of payments.