The Chinese People's Bank (PBOC) set the USD/CNY for the trading session on Wednesday at 7.2005, compared to the previous day correction 7.2008 and 7.2124 Reuters.
PBOC FAQ
The main monetary policy objectives of the Chinese People's Bank (PBOC) are the defense of the stability of the price, including the exchange rate stability and the promotion of economic growth. The aim of the Chinese Central Bank is also financial reforms, such as opening and development of the financial market.
PBOC belongs to the state of the People's Republic of China (HRV), so it is not considered an autonomous institution. The secretary of the Chinese Communist Party (CCP) Commission, named by the Chairman of the Council of the Council, has the impact of the key on PBOC leadership and direction, not on the governor. However, Mr Pan Gongsheng has both posts.
Unlike the Western economy, PBOC uses a wider set of monetary policy tools to achieve its goals. The primary tools include the opposite seven -day repotenor (RRR), medium -term loan facilities (MLF), currency exchange interventions and the reserve ratio (RRR). However, the Prime Minister of the Loan (LPR) is the interest rate of China's benchmark. The LPR changes directly affect the rates paid in the loans and mortgages in the market and the interest paid in savings. By changing the LPR, the Chinese central bank can also influence the exchange rate of the Chinese Renminb.
Yes, there are 19 private banks in China – a small part of the financial system. The biggest private banks are digital lenders Webank and Mybank, supported by the Tech Giants Tencent and Ant Group, in the Strait time. In 2014, Chinese domestic lenders, who have been fully exploited by private funds, promised to operate the country's dominant financial sector.
