BEIJING (Reuters) – Stimulus measures implemented by the Federal Reserve’s over the past year and future policy changes that the U.S. central bank has signalled will have limited impact on China’s financial markets, a Chinese central bank official said on Thursday.

“The positive effect of China’s normal monetary policy stance is emerging,” said Sun Guofeng, head of the People’s Bank of China’s (PBOC) monetary policy department.

“The next step is to manage our own affairs well, and we must keep our monetary policy steady.

“We’re happy to see efforts by other economies to return to normal monetary policy which will be benefitial for the long-term healthy development of the global economy.”

Sun, briefing at a media conference in Beijing, said the PBOC noted the recent hikes in U.S. Treasury yields, which led to the appreciation of the dollar and increasing risks in re-financing and debt repayment for some emerging markets.

Sun added that PBOC will keep the yuan’s exchange rate basically stable at a reasonable level, and step up prudent management of cross-border capital flows and guide expectations.

There is also a need to keep China’s benchmark lending rate for corporate and household loans, Loan Prime Rate (LPR), at a reasonable level, Sun said, to anchor the money supply.

Wang Xin, director of the central bank’s research bureau, said that the PBOC has launched a multi-lateral digital currency research pilot programme with monetary authorities in Hong Kong, Thailand and United Arab Emirates.

Wang said PBOC is also testing cross-border use of digital yuan with Hong Kong monetary authority.

China will also gradually incorporate climate-relate risks into the PBOC’s macroprudential regulatory framework, said PBOC vice governor Liu Guiping.

Liu also said China will work with U.S. to push forward sustainable finance work for G20.