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Last updated at: (Beijing Time) Thursday, March 07, 2002

China to Maintain Stable Monetary Policy

China's monetary policy last year attained its stated goals. China will maintain its stable monetary policy this year, according to a report on Wednesday by the People's Bank of China (PBOC), the country's central bank.


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Stated Goals Attained in 2001

China's monetary policy last year attained its stated goals, said the report on the implementation of the monetary policy in 2001.

  • Broad Money and Narrow Money


    • By the end of last year there was 15.8 trillion yuan in outstanding broad money (M2), up 14.4 percent from the previous year; 6 trillion yuan in narrow money (M1), up 12.7 percent; and money in circulation (M0) reached 1.6 trillion yuan, up 7.1 percent, according to the PBOC report.

    And the government expects that both the broad money and narrow money will increase by 13 percent this year and new money in circulation will not exceed 150 billion yuan.

  • Outstanding Deposits and Loans


    • At the end of last year, outstanding deposits stood at 14.4 trillion yuan, up 16 percent from the previous year. Of these, corporate deposits made up 5.2 trillion yuan, while individual savings were 7.4 trillion yuan.

    At the same time, the outstanding loans were 11.2 trillion yuan, up 11.6 percent from the previous year. Loans to agriculture, individual consumption and note discount saw big increases, which helped to rationalize loan structures.

    The central bank hoped that this year's total loans would rise by 1.3 trillion yuan with loan structures being streamlined.

  • Foreign Exchange of 2001


    • The report revealed that the country's foreign exchange reserves were 212.2 billion U.S. dollars, up 46.6 billion U.S. dollars from the previous year. Total deposits in foreign currency topped 134.9 billion U.S. dollars, a rise of 5.2 percent which was a bit lower than the growth in the year 2000.

  • Non-performing Loans


    • The country's banking sector made great efforts to handle non- performing loans last year. Non-performing loans by state-owned commercial banks dropped by 90.7 billion yuan, with the rate down 3.81 percentage points.

  • Fixed Assets Investment


    • The report also said that this year's fixed assets investment is expected to increase by 12.5 percent and domestic consumption to rise by 10 percent while GDP growth may reach seven percent.

    Prospects of Exports and Imports in 2002

    Exports are forecast to maintain a slow growth in the first half of this year while imports may be higher than last year due to tariff reductions and the Yen's devaluation. The growth of exports and imports may reach 6.2 percent and 9.5 percent respectively this year.



    PBC Published Analytic Report on Steady Monetary Policy
    The People's Bank of China (PBC) published an analytic report in its website in which it elaborated on the origin, connotation and effect of China's steady monetary policies on Feb 26.

    China to Stick to Steady Monetary Policies
    China's central bank announced on January 20 that it will continue adopting steady monetary policies while maintaining the exchange rate of the renminbi (RMB), the Chinese currency.




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