In a move signaling continued economic support, China's central bank has reaffirmed its commitment to a \"moderately loose\" monetary policy for the year 2024. This approach aims to sustain growth while maintaining stability in the yuan's exchange rate.
Deputy Governor Xuan Changneng highlighted the positive outcomes of the past year, noting that credit and liquidity have expanded \"reasonably\" and have yielded favorable results for the economy.
Strong Growth in Credit and LiquidityBy the end of December last year, total social financing—a broad measure of credit and liquidity—had expanded by 8 percent year-over-year, according to PBOC data. Yuan-denominated loans saw a substantial increase of 18.09 trillion yuan ($2.52 trillion) in 2024, while the broad money supply, or M2, rose by 7.3 percent as of December's end.
Yuan Remains Stable Amid Complex ConditionsDespite global economic uncertainties, the renminbi has remained stable. Xuan emphasized that the Chinese currency has performed well against major currencies, playing a crucial role in stabilizing both the economy and trade. By the close of 2024, the China Foreign Exchange Trade System yuan exchange rate composite index stood at 101.47, marking a 4.2 percent increase from the previous year.
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China's central bank reaffirms 'moderately loose' monetary policy
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