China to Stick to Steady Monetary Policies

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Last updated at: (Beijing Time) Monday, January 21, 2002

China to Stick to Steady Monetary Policies

China's central bank announced Sunday it will continue adopting steady monetary policies while maintaining the exchange rate of the renminbi (RMB), the Chinese currency.

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China's central bank announced Sunday it will continue adopting steady monetary policies while maintaining the exchange rate of the renminbi (RMB), the Chinese currency.

According to the latest quarterly meeting of the currency policy committee of the People's Bank of China, the central bank decided to closely monitor the global economic and financial situation, and pursue steady monetary policies.

Participating financiers estimated that money in circulation may reach no more than 150 billion yuan (about 18 billion U.S. dollars) in 2002, an annual increase of 13 percent.

Various financial institutions would extend 1.3 trillion yuan in loans in the year, they predicted.

Meanwhile, the financiers stressed the importance of maintaining the stability of the RMB exchange rate.

The central bank has vowed to reform state-funded commercial banks, which are urged to standardize their loan business.

Statistics released by the central bank show that in 2001 the amount of broad money (M2) increased by 14.4 percent to reach 15.8 trillion yuan, and loans by financial institutions increased by 1. 3 trillion yuan, an annual increase of 11.6 percent.

Dai Xianglong, governor of the People's Bank of China and also chair of the committee, presided over the meeting, which was attended by other committee members, senior officials, and heads of the bank's local branches in Guangzhou, Wuhan and Chengdu.

China to Maintain Exchange Rate Stability: Dai

China will improve foreign exchange administration and maintain a strong position in balance of payments and exchange rate stability, China will also give priority to continuing the market-based, managed floating exchange rate system, said Dai Xianglong, China's central bank governor on January 15. (In Detail)

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