People's Bank of China
The People's Bank of China
is the Chinese central bank
, which was founded on December 1st, 1948. The bank's headquarters are located in Beijing. The People's Bank of China is responsible for designing and implementing the monetary policy
of China. The bank is in charge of preventing and resolving financial risks and ensuring financial stability. The bank is also responsible for issuing the Chinese official currency
the Renminbi and its circulation. It also manages the Chinese foreign reserves and gold reserves. Another major responsibility for of People's Bank of China is the regulation of the Chinese financial markets, which includes bank-to-bank lending market, bank-to-bank bond market, FOREX and gold markets. The bank is also accountable for the smooth operation of the payment and settlement markets in China. The People's Bank of China manages the State treasury as well.
The Chinese monetary policy is designed to maintain price stability and facilitate economic growth. These 2 goals should be reached through maintaining stable currency. The People's Bank of China uses several monetary instruments in its monetary policy implementation, including influencing short-term interest rates, open market operations (buying/selling government securities in the open markets), controlling the reserve requirement ratio, and more.
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