China's central bank has announced that it will continue with a \"moderately loose\" monetary policy throughout 2024, aiming to keep the yuan's exchange rate stable and balanced. This move comes as part of the People's Bank of China's (PBOC) efforts to support the economy amid global uncertainties. 🌏💱
Positive Growth in Credit and Liquidity
Deputy Governor Xuan Changneng highlighted that the country's monetary policy has delivered favorable outcomes over the past year. Total social financing, a broad measure of credit and liquidity, grew by 8% year-on-year by the end of December last year. Additionally, yuan-denominated loans surged by 18.09 trillion yuan ($2.52 trillion) in 2024, while the broad money supply (M2) saw a healthy increase of 7.3%.
Stable Renminbi in a Complex Landscape
The renminbi has maintained its stability despite a challenging global environment. Xuan emphasized that the Chinese currency has performed relatively well among major currencies, contributing positively to the stabilization of both the economy and international trade. 📊💪
By the end of 2024, the China Foreign Exchange Trade System yuan exchange rate composite index stood at 101.47, marking a 4.2% increase compared to the previous year. This stability is a testament to the PBOC's effective monetary strategies and their role in fostering economic resilience.
As China navigates the complexities of the global market, the PBOC's commitment to a balanced monetary policy remains a cornerstone of its economic strategy, ensuring continued growth and stability for the nation. 🚀✨
