Central bank promises 'basically stable' RMB

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Last updated at: (Beijing Time) Thursday, March 11, 2004

Central bank promises 'basically stable' RMB

Zhou Xiaochuan, head of People's Bank of China (PBOC) and Liu Mingkang, chairman of China's Banking Regulatory Commission (PBRC) answered reporters' questions at a press conference of the second session of the 10th National People's Congress (PBOC) held in Beijing on 10 am Mar. 11.

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Zhou Xiaochuan, head of People's Bank of China (PBOC) and Liu Mingkang, chairman of China's Banking Regulatory Commission answered reporters' questions at a press conference of the second session of the 10th National People's Congress (PBOC) held in Beijing on 10 am Mar. 11.

China's central bank vows to keep RMB exchange rate "basically stable"

China's central bank pledged Thursday to keep the exchange rate of Renminbi (RMB) "basically stable at an adaptive and equilibrium level".

In 2004, the People's Bank of China (PBOC) will strengthen coordination of its domestic and foreign currency policies, and better monitor and manage short-term capital flows, according to background materials provide by PBOC at the press conference on the sideline of the ongoing sessions of the 10th National People's Congress (NPC) and the 10th National Committee of the Chinese People's Political Consultative Conference.

The central bank plans to "steadily push ahead with RMB convertibility under capital account, further develop foreign exchange market and improve the mechanisms for determining RMB exchange rate, and keep the RMB exchange rate basically stable at an adaptive and equilibrium level," according to the materials.

Central bank steps up crackdown on counterfeiting currency

The People's Bank of China, the central bank, said Thursday that China stepped up efforts on combating currency counterfeit in the past year, confiscating 656 million yuan and 5.05 million US dollars in counterfeit notes.

Meanwhile, banknote management was strengthened and a total of 9,007 financial institutions were found violating cash management regulations last year, according to background materials released Thursday by the central bank at a press conference.

The press conference was sponsored by the press center of the ongoing Second Session of 10th National People's Congress and Second Session of the 10th National Committee of the Chinese People's Political Consultative Conference.

NPL ratio of Chinese banks down to 17.8%

China's major banking institutions slashed the ratio of non-performing loans (NPLs) by 5.32 percentage points to 17.8 percent last year, according to a press conference here Thursday.

In 2003, total NPL volume of major Chinese financial institutions was cut off by 190.6 billion yuan (approximately 23.1billion US dollars) to 2.44 trillion yuan (295 billion dollars) at the year's end, according to background materials provided by the China Banking Regulatory Commission (CBRC) at the press conference on the sideline of the ongoing sessions of the 10th National People's Congress (NPC) and the 10th National Committee of the Chinese People's Political Consultative Conference.

The figures demonstrate China's enhanced ability to weather financial risks and supervise its banking organs, the CBRC said.

The CBRC punished 1,242 banking institutions at different levels and penalized 3,251 bank staffs who violated financial regulations in the past year. The financial "watchdog" also strengthened its off-site surveillance function, and monitored economic and financial development so as to promptly identify and signal potential risks, according to the materials.

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