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.
TEXT SIZE - +
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

Algerians Vote in Presidential Election

There were few media reports of protests and clashes around the country, but so far no significant violence More

Sharks More Evolved than Previously Thought

The discovery could “profoundly affect our understanding of evolutionary history” More

Pakistan Military Asked to Protect Polio Workers

Request comes as authorities say a Taliban ban on vaccinations in 2012 and deadly attacks on anti-polio teams have prevented thousands of children from getting inoculated More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid