China’s central bank will implement a “moderately loose” monetary policy and keep the exchange rate of the yuan basically stable at a reasonable and balanced level this year, said an official from the People’s Bank of China (PBOC) at a press conference in Beijing on Tuesday.
Overall, the country’s monetary policy yielded favorable results over the past year, with credit and liquidity growing reasonably, said Xuan Changneng, deputy governor of the PBOC.
PBOC: Monetary Policy Yielded Good Results in 2022
By the end of December last year, total social financing—a broad measure of credit and liquidity in the economy—expanded by 8 percent year on year, PBOC data showed on Tuesday. China’s yuan-denominated loans rose by 18.09 trillion yuan ($2.52 trillion) in 2022, while the broad money supply, or M2, increased by 7.3 percent as of the end of December.
Meanwhile, the renminbi has remained basically stable under complex circumstances, Xuan said. The Chinese currency has performed relatively well among major currencies, playing a positive role in stabilizing the economy and trade, he noted.
By the end of 2022, the China Foreign Exchange Trade System yuan exchange rate composite index—which measures the yuan’s exchange rate changes against a basket of currencies—stood at 101.47, up 4.2 percent compared to the end of the previous year, according to Xuan.
Reference(s):
China's central bank reaffirms 'moderately loose' monetary policy
cgtn.com
