China central bank pledges to push on with key reforms

China’s central bank on Sunday pledged to forge ahead with key financial reforms, shore up foreign exchange management and provide more credit for the country’s cash-starved small firms.

The People’s Bank of China will ‘seize an important strategic opportunity’ to push reform of major financial sectors and ‘strengthen and improve’ foreign exchange management, it said in a statement posted on its website.

The statement was issued after a meeting of officials to study a speech by President Hu Jintao at a gathering marking the 90th anniversary of the Communist Party of China (CPC).

The central bank will make monetary policy more ‘targeted, flexible and efficient’, it said.

Separately, the State Administration of Foreign Exchange (SAFE) said in a statement that it would push changes to make the yuan fully convertible in a ‘steady and orderly’ way while stepping up monitoring on ‘abnormal’ cross-border capital flows.

It also pledged to shore up management of its foreign exchange reserves – the world’s largest, topping US$3 trillion (S$3.7 trillion) – and improve the country’s balance of payments.

Reuters

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