Banque Populaire de China (PBOC) set the USD / CNY central rate for the negotiation session Tuesday at 7.2029 compared to the correction of the day before 7.2043 and 7.2781 Reuters.
PBOC FAQ
The main objectives of the monetary policy of the Popular Banque of China (PBOC) are to protect price stability, including the stability of exchange rates, and to promote economic growth. The Chinese central bank also aims to implement financial reforms, such as the opening and development of the financial market.
The PBOC belongs to the State of the People's Republic of China (PRC), it is therefore not considered as an autonomous institution. The secretary of the Committee of the Chinese Communist Party (CCP), appointed by the President of the Council of State, has a key influence on the management and management of the PBOC, not by the governor. However, Mr. Pan Gongsheng is currently holding these two positions.
Unlike Western economies, the PBOC uses a wider set of monetary policy instruments to achieve its objectives. The main tools include a seven -day reversed repo rate (RRR), a medium -term loan installation (MLF), exchange interventions and a reserve requirement ratio (RRR). However, the prime loan rate (LPR) is China's reference interest rate. LPR changes directly influence rates that must be paid on the market for loans and mortgages and interest paid on savings. By modifying the LPR, the Chinese central bank can also influence exchange rates of the Chinese renminbi.
Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are the digital lenders Webank and MyBank, who are supported by the Tencent and Ant Group technology, according to The Straits Times. In 2014, China authorized national lenders fully capitalized by private funds to operate in the financial sector dominated by the State.
