News / Asia

China Central Bank Says Priority is Keeping Prices Stable

People's Bank of China Deputy Governor Yi Gang is seen at the IMF/World Bank Group meeting in Tokyo October 14, 2012.  People's Bank of China Deputy Governor Yi Gang is seen at the IMF/World Bank Group meeting in Tokyo October 14, 2012.
x
People's Bank of China Deputy Governor Yi Gang is seen at the IMF/World Bank Group meeting in Tokyo October 14, 2012.
People's Bank of China Deputy Governor Yi Gang is seen at the IMF/World Bank Group meeting in Tokyo October 14, 2012.
TOKYO – China's central bankers on Sunday allowed some public and direct insight into their thinking. A top official of the People's Bank of China delivered remarks to those who had been attending a joint meeting of the International Monetary Fund and World Bank in Tokyo.

The deputy governor of the People's Bank of China, Yi Gang, says the priority for monetary authorities in Beijing is on stable prices and they want to pursue a sustainable path of economic development.

China's next stimulus package - focused on expanding the country's transportation infrastructure, will be an appropriate one, according to Yi.

"When I say appropriate in terms of size that is large enough to stabilize the growth but not too large to cause some further negative impact or negative problem in the future."

China's economy has slowed for the past six consecutive quarters. But it still has cash reserves estimated to be around 40 percent of its gross domestic product and with official foreign currency reserves around three-and-a-quarter trillion dollars.

Yi, speaking for his boss, characterized the Chinese currency as having reached its equilibrium, and said the central bank had not intervened in the foreign exchange market in the past year.

The United States has long urged Beijing to lift exchange markets controls, contending the Chinese currency is undervalued and that gives China's exports an unfair price advantage overseas.

Yi said the central bank will continue to diversify its reserve holdings as China is already sitting on enough cash, and "in terms of reserves, it's not the more the better."

The central bank number two told the audience of banking officials that he does not promote the internationalization of the renminbi (the official name for the yuan) and moves in that direction are totally market-driven.

Responding to a question about what authorities will do amid speculation China faces a bubble with soaring urban real estate prices, especially in Beijing and Shanghai, Yi indicated he and fellow central bankers are keeping a close watch.

"Right now whether it's a correct level or it's a bubble is not known. But if it continues to go up the probability is higher and higher it will become a bubble. Right? So, that we certainly don't want to have a bubble so we want to stabilize the real estate prices."

Yi was a stand-in at the Tokyo meetings for the People's Bank of China governor Zhou Xiachuan and delivered a speech on his behalf.

Zhou, along with China's finance minister, broke with their country's own protocol and did not send top relevant officials to the annual event.

Chinese officials have made no secret this was meant to express Beijing's displeasure over a recently re-ignited territorial dispute with Japan.

Steve Herman

A veteran journalist, Steven L Herman is the Voice of America Asia correspondent.

You May Like

IS Militants Release 49 Turkish Hostages

Turkey's state-run Anadolu news agency reports that no ransom was paid and no conditions accepted for the hostages' release; few details of the release are known More

Photogallery IS Attacks Send Thousands of Syrian Kurds Fleeing to Turkey

Syrian Observatory for Human Rights says more than 300 Kurdish fighters crossed into Syria from Turkey to defend a Kurdish area from attack by the Islamic militants More

Video Sierra Leone's Ebola Lockdown Continues

Thousands of health workers are going door to door in the West African country of 6 million, informing people of how to avoid Ebola, handing out soap More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Fears Ebola Outbreak ‘Beyond Our Capability to Contain’i
X
Jeff Seldin
September 20, 2014 10:28 PM
Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Fears Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Obama Goes to UN With Islamic State, Ebola on Agenda

President Obama goes to the United Nations General Assembly to rally nations to support a coalition against Islamic State militants in Iraq and Syria. He also will look for nations to back his plan to fight the Ebola virus in West Africa. As VOA White House correspondent Luis Ramirez reports, Obama’s efforts reflect new moves by the U.S. administration to take a leading role in addressing world crises.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Militant Assault in Syria Displaces Thousands of Kurds

A major assault by Islamic State militants on Kurds in Syria has sent a wave of new refugees to the Turkish border, where they were stopped by Turkish border security. Turkey is already hosting about 700,000 Syrian refugees who fled the civil war between the government and the opposition. But the government in Ankara has a history of strained relations with Turkey's Kurdish minority. Zlatica Hoke reports Turkey is asking for international help.
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid