Source: CCTV.com

03-06-2009 13:59

Special Report:   Global Financial Crisis
Special Report:   2009 NPC & CPPCC Sessions

Video: Press conference on Chinese economy (Part 1) (Part 2)

China has acted fast amid the global financial crisis to ease its monetary policy that is beginning to take effect. That's according to central bank governor Zhou Xiaochuan, who made the comments on Friday during a news conference on the sidelines of the parliament's annual session. He also said that China is expected to soon issue a policy facilitating settlement in yuan for trade between Hong Kong and the mainland.

Zhou Xiaochuan, Governor of PBOC

The head of the People's Bank of China Zhou Xiaochuan said China has shifted from the tight monetary policy implemented in early 2008, to a moderately easy one as the international financial turmoil spread in the second half of the year. He added the country would rather act fast and take more forceful measures to shore up confidence.

Zhou announced that a policy facilitating settlement in yuan for trade between Hong Kong and mainland will soon be made public. He said since end of 2003, Hong Kong commercial banks have operated renminbi business on a trial basis.

Zhou Xiaochuan, Governor of PBOC said "There are no major technical difficulties in realizing the settlement of Hong Kong-mainland trade in yuan because banks are already operating with multiple currencies, while payment systems accommodating mainland tourists using yuan have been operating on a tentative base since 2003. What remains to be done is only a few adjustments on the transaction systems of banks and regulating policies."

Zhou noted the mainland and Hong Kong have not been forced to use the currency pool, which is a result of a currency swap agreement between the two sides.

The Chinese mainland and Hong Kong signed a three-year currency swap deal worth 200 billion yuan in January, aimed at helping stabilize Hong Kong's economy and its currency.

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Editor:Xiong Qu