“There are no winners in commercial wars and customs tariff wars,” said the Popular Bank of China (PBOC).
Additional quotes
- Unilateral and fever has no way out and is not in the interest of anyone.
- China will adhere to openness.
- China supports packages of free trade and multilateral trading system.
- China will enhance comprehensive economic globalization, and to maintain global economic and financial stability.
Market reaction
As of writing, AUD/USD maintains a lower floor near 0.6350, a decrease of 0.15 % a day.
PBOC questions and answers
The goals of the initial monetary policy of the Popular Bank of China (PBOC) is to protect prices stability, including the stability of the exchange rate and the enhancement of economic growth. The Chinese Central Bank also aims to implement financial reforms, such as opening and developing the financial market.
PBOC owns the state of the People’s Republic of China (PRC), so it is not considered an independent institution. The Secretary of the Communist Party Committee (CCP), nominated by the head of the State Council, has a major impact on the PBOC administration and its direction, not the ruler. However, Mr. Ban Jongcheng currently holds both these jobs.
Unlike Western economies, PBOC uses a broader set of monetary policy tools to achieve its goals. The basic tools include a seven -day Rebu Recipt rate (RRR), a medium -term lending attachment (MLF), foreign exchange interventions and the RRR requirements. However, the main loan price (LPR) is the record interest rate for China. LPR changes directly affect the prices that must be paid in the market to obtain loans, mortgages and the benefits paid on savings. By changing LPR, the Chinese Central Bank can also affect Chinese Renminbi exchange rates.
Yes, China has 19 private banks – a small part of the financial system. The largest private banks are the digital lenders Webank and MyBank, which are supported by Giants Tech Techncent and Ant Group, according to The Straits Times. In 2014, China allowed local lenders who fully benefited from work funds in the state -controlled financial sector.
