On the premise of maintaining financial stability and by using various monetary policy tools, the central bank has effectively satisfied the funding demand for economic growth. The exchange rate of the Renminbi remained stable and foreign-exchange reserves grew steadily.

Statistics show that by the end of 1999, the balance of currency in its broad sense M2 was 119,000 yuan, up by 14.7 percent over the same period of the previous year, thus achieving the anticipated control objective. The balance of currency in its narrow sense M1 was 4583.7 billion yuan, up 17.7 percent, or nearly 6 percentage points over the same period of the previous year. The accelerated growth of M1 is a positive change emerged in the monetary operation in 1999. The balance of cash in circulation M0 stood at 1345.6 billion yuan, up by 20.1 percent. The input of cash hit 225.1 billion yuan in the whole year.

The balance of various loans extended by all financial institutions came to 9,373.4 billion yuan, calculated in terms of comparable items, it represented a 12.5 percent increase over the previous year, an increase of 1,084.6 billion yuan of loans in the whole year.

The balance of savings deposits in all financial institutions stood at 10,877.9 billion yuan, up by 13.7 percent. Of which, enterprise deposits grew by 14.5 percent, with the rate of increase going up by 1.1 percentage points. There was a fairly great change in the term of enterprise deposits in 1999, as manifested in the increase of current deposits and decrease in fixed-term deposits. Current deposits increased by 358.0 billion yuan in the whole year, or 123.7 billion yuan more increase than that of the previous year; fixed-term deposits went up by 114.5 billion yuan, or 42.3 billion yuan less increase than in the preceding year. The bigger increase of enterprise current deposits reflects a stronger demand for spot currency and indicates that enterprises have a better anticipation of future economic development.

The remainder of urban and rural residents' savings deposits was 5,962.2 billion yuan, up by 11.6 percent, with the rate of growth falling by 5.5 percentage points from the end of the previous year. Savings deposits in the whole year went up by 625.3 billion yuan, or 137.4 billion yuan less increase than in the year before, the tendency of growth was manifested as first high and then low, between January-May 1999, residents' savings deposits rose by 559.9 billion yuan, or an increase of 169.2 billion yuan over the same period of the previous year, whereas in the June-December period, residents' savings deposits climbed only 65.4 billion yuan, or 306.6 billion yuan less increase compared with the same period of the year before.

The exchange rate of the Reminbi remained stable at the year end: one US dollar to 8.2793 yuan Renminbi, or 4 basis points lower than at the end of the previous year. Foreign-exchange reserves of China increased by US$9.8 billion in the whole year, with the balance reaching US$154.7 billion.