China's central bank has reaffirmed its commitment to a \"moderately loose\" monetary policy this year, aiming to keep the exchange rate of the yuan stable at a reasonable and balanced level.
At a press conference in Beijing on Tuesday, Xuan Changneng, deputy governor of the People's Bank of China (PBOC), highlighted the positive outcomes of the country's monetary policy over the past year, noting that credit and liquidity have grown at a sustainable pace.
By the end of December last year, total social financing—a broad measure of credit and liquidity—expanded by 8 percent year on year, according to PBOC data released on Tuesday. Additionally, yuan-denominated loans surged by 18.09 trillion yuan ($2.52 trillion) in 2024, while the broad money supply, or M2, increased by 7.3 percent.
Despite complex global economic conditions, the renminbi has remained basically stable. Xuan emphasized that the Chinese currency has performed well compared to major currencies, playing a crucial role in stabilizing both the economy and trade.
Furthermore, by the end of 2024, the China Foreign Exchange Trade System yuan exchange rate composite index stood at 101.47, marking a 4.2 percent increase compared to the previous year. This stability underscores the effectiveness of the PBOC's monetary strategies in navigating economic challenges.
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China's Central Bank Sticks to 'Moderately Loose'…
