China's central bank reiterates its commitment to a 'moderately loose' monetary policy
China's central bank has committed to effectively carry out a moderately loose monetary policy and maintain the yuan's exchange rate at a stable, adaptive, and balanced level for this year. This statement was made by Xuan Changneng, deputy governor of the People's Bank of China, during a press conference on Tuesday.
TroibNews 
China's central bank plans to implement a "moderately loose" monetary policy while ensuring the yuan's exchange rate remains stable at a reasonable level throughout the year, according to an official from the People's Bank of China (PBOC) during a press conference in Beijing on Tuesday.
Xuan Changneng, the deputy governor of the PBOC, stated that the overall monetary policy in the country achieved favorable outcomes over the past year, with credit and liquidity growing at a reasonable pace.
PBOC: Monetary policy yielded good results in 2024
As of the end of December last year, total social financing—a broad indicator of credit and liquidity—grew by 8 percent year-on-year, as reported by the PBOC on Tuesday. The yuan-denominated loans increased by 18.09 trillion yuan in 2024, and the broad money supply, or M2, saw a rise of 7.3 percent compared to the previous December.
According to Xuan, the renminbi has maintained relative stability despite facing complex challenges. He noted that the Chinese currency has performed well against other major currencies, contributing positively to the stabilization of the economy and trade.
At the end of 2024, the China Foreign Exchange Trade System yuan exchange rate composite index, which tracks the yuan's changes against a basket of currencies, was recorded at 101.47—an increase of 4.2 percent from the end of the previous year.
PBOC: Counter-cyclical adjustments to be strengthened in 2025
Looking ahead, the PBOC intends to enhance counter-cyclical adjustments in response to the country's economic and financial situations, as well as external influences.
"Based on evolving domestic and global economic conditions, as well as financial market dynamics, we will fine-tune the intensity and timing of policy measures as needed to support the achievement of economic and social development goals," Xuan stated.
He also mentioned that a combination of monetary policy tools will be used to ensure adequate liquidity and create a favorable financing environment.
Regulators confident of yuan stability
In related comments, Li Bin, deputy head of the State Administration of Foreign Exchange, expressed confidence in the renminbi's capacity to maintain stability, noting an anticipated strong rebound in the Chinese economy, a stable international payment balance, and increased resilience in the foreign exchange market.
Xuan added that a comprehensive strategy will be pursued to bolster the foreign exchange market's resilience, stabilize market expectations, and enhance oversight. Steps will be taken to counteract pro-cyclical behavior, address disruptions in market order, and mitigate risks associated with excessive fluctuations in the yuan's exchange rate.
James del Carmen for TROIB News
Xuan Changneng, the deputy governor of the PBOC, stated that the overall monetary policy in the country achieved favorable outcomes over the past year, with credit and liquidity growing at a reasonable pace.
PBOC: Monetary policy yielded good results in 2024
As of the end of December last year, total social financing—a broad indicator of credit and liquidity—grew by 8 percent year-on-year, as reported by the PBOC on Tuesday. The yuan-denominated loans increased by 18.09 trillion yuan in 2024, and the broad money supply, or M2, saw a rise of 7.3 percent compared to the previous December.
According to Xuan, the renminbi has maintained relative stability despite facing complex challenges. He noted that the Chinese currency has performed well against other major currencies, contributing positively to the stabilization of the economy and trade.
At the end of 2024, the China Foreign Exchange Trade System yuan exchange rate composite index, which tracks the yuan's changes against a basket of currencies, was recorded at 101.47—an increase of 4.2 percent from the end of the previous year.
PBOC: Counter-cyclical adjustments to be strengthened in 2025
Looking ahead, the PBOC intends to enhance counter-cyclical adjustments in response to the country's economic and financial situations, as well as external influences.
"Based on evolving domestic and global economic conditions, as well as financial market dynamics, we will fine-tune the intensity and timing of policy measures as needed to support the achievement of economic and social development goals," Xuan stated.
He also mentioned that a combination of monetary policy tools will be used to ensure adequate liquidity and create a favorable financing environment.
Regulators confident of yuan stability
In related comments, Li Bin, deputy head of the State Administration of Foreign Exchange, expressed confidence in the renminbi's capacity to maintain stability, noting an anticipated strong rebound in the Chinese economy, a stable international payment balance, and increased resilience in the foreign exchange market.
Xuan added that a comprehensive strategy will be pursued to bolster the foreign exchange market's resilience, stabilize market expectations, and enhance oversight. Steps will be taken to counteract pro-cyclical behavior, address disruptions in market order, and mitigate risks associated with excessive fluctuations in the yuan's exchange rate.
James del Carmen for TROIB News
