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, Steve Herman is VOA's Southeast Asia Bureau Chief and Correspondent, based in Bangkok.

You May Like

Could Nemtsov Threaten Putin in Death as in Life?

Dynamic and debonair opposition leader had supported liberal economic reforms, criticized Russian president's aggression in Ukraine More

Oil Smuggling Highlights Challenges in Shutting Down IS Finances

Pentagon spokesman says Islamic State 'certainly continues to get revenue from the oil industry black market' but that airstrikes have made a dent More

India Focuses on Infrastructure, Investment to Propel Economy

Government expects economy to grow at 8 to 8.5 percent in next fiscal year More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Supreme Court Hears Hijab Discrimination Casei
X
Katherine Gypson
February 25, 2015 11:30 PM
The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video US Supreme Court Hears Hijab Discrimination Case

The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video Falling Gas Prices Hurt Nascent Illinois Hydraulic Fracturing Industry

Falling oil prices are helping consumers purchase cheaper petroleum at the pump. But that’s made hydraulic fracturing or “fracking” less economically viable for the companies in the United States invested in the process. VOA’s Kane Farabaugh reports on one Midwestern town that was hoping to change its fortunes by cashing in on the next big U.S. oil boom.
Video

Video Fighting in Sudan's South Kordofan Fuels Mass Displacement

Heavy fighting in Sudan's South Kordofan state is causing hundreds of thousands to flee into uncertain conditions. Local aid organizations estimate as many as 400,000 civilians have been internally displaced since the conflict began more than three years ago, while another 250,000 have fled across the border to refugee camps in South Sudan. VOA's Adam Bailes reports.
Video

Video Lao Dam Project Runs Into Opposition

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.
Video

Video A Filmmaker Discovers Her Biracial Identity in "Little White Lie

Lacey Schwartz grew up in an upper middle-class Jewish family, in a town in upstate New York where almost everyone she knew was white. She assumed that she was, as well. Her recent documentary, Little White Lie, tells the story of how she uncovered the secret of her true racial background. VOA’s Carolyn Weaver has more on the film.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.
Video

Video US-Cuba Normalization Talks Resume Friday

Negotiations aimed at normalizing diplomatic relations between the U.S. and Cuba resume Friday. On the table: lifting a half-century trade embargo and easing banking and travel restrictions. There's opposition in Congress, but some analysts say there may be sufficient political and economic incentives in both nations for a potential breakthrough this year. VOA's Mil Arcega reports.
Video

Video Pakistan's Deadline For SIM Registration Has Cellphone Users Scrambling

Pakistani cell phone users have until midnight Thursday to register their SIM cards, or their service will be cut off. While some privacy experts worry about government intrusion, many Pakistanis are just worried about keeping their phone lines open. VOA Deewa reporter Arshad Muhmand has more from Peshawar.
Video

Video Myanmar Warns Factory Workers to End Strikes

Outside Myanmar's main city Yangon, thousands of workers walked off their jobs earlier this month demanding a doubling of their wages, pay raises after a year and input from labor unions on industrial regulations. Since Friday, the standoff has grown more tense as police moved in to disrupt the sit-ins, resulting in clashes that injured people from both sides. VOA correspondent Steve Herman visited industrial zones which have become a focus of Myanmar's fledgling workers rights movement.
Video

Video Oscar Winners Do More Than Thank the Academy

The Academy Awards presentation is Hollywood’s night to reward the best movies from the previous year. It’s typically a lot of glitter, a lot of thank you’s, a lot of speeches. But many of this year’s speeches carried messages beyond the thank you's. VOA’s Carolyn Presutti takes a look.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More