China's central bank commits to ensuring stability of RMB exchange rate

BEIJING -- The People's Bank of China (PBOC), the country's central bank, said it will implement a mix of policy measures to stabilize market expectations, resolutely prevent major exchange rate fluctuations, and keep the RMB exchange rate basically stable at a reasonable and equilibrium level.

In its latest monetary policy report for the second quarter, the PBOC said it will roll out a sound monetary policy in a targeted and effective manner and give better play to the role of monetary policy instruments in adjusting both the quantity and the structure to support the recovery of the real economy.

The central bank said it will keep liquidity adequate at a reasonable level, and ensure that the growth of money supply and the aggregate financing to the real economy are generally in line with the nominal GDP growth.

The PBOC added that it will continue to deepen the market-oriented reform regarding interest rates with a view to lowering the financing costs for both enterprises and residents.

The bank said it will continue to step up support for micro and small businesses, sci-tech innovation, and green development through structural monetary policy instruments.

In adapting to the major changes in supply and demand in the property market, the bank said it will adjust and optimize policies related to the property sector to promote its steady and healthy growth.

The central bank said it will give better play to the role of finance in promoting consumption, stabilizing investment and expanding domestic demand.

Efforts will also be made to prevent and defuse financial risks in key areas through finance support in defusing local debt risks and promoting small and medium-sized financial institutions' reform efforts to remove risks, the PBOC added.