People's Bank of China: Continue to implement a moderately relaxed monetary policy and promote the internationalization of the Renminbi

On December 12, the Party Committee of the People’s Bank of China held a meeting, and the third point of the meeting minutes emphasized: Continue to implement moderately loose monetary policy, accelerate financial supply-side structural reform. Make promoting economic stability and reasonable price increases an important consideration of monetary policy, flexibly and efficiently use various monetary policy tools such as reserve requirement ratio cuts and interest rate reductions, grasp the strength, rhythm, and timing of policy implementation, maintain ample liquidity, promote low-cost social comprehensive financing, and strengthen financial support for the real economy. Smooth the transmission mechanism of monetary policy, optimize the use of structural monetary policy tools, enhance coordination with fiscal policy, and encourage and guide financial institutions to increase support for expanding domestic demand, technological innovation, small and micro enterprises, and other key areas. Keep the RMB exchange rate basically stable at a reasonable and balanced level. The fifth point of the meeting minutes states: Steadily advance high-level financial opening, safeguard China’s national financial security. Practice global governance initiatives, actively participate in and promote reforms and improvements in global financial governance. Pragmatically carry out financial diplomacy and multi- and bilateral monetary and financial cooperation. Promote the internationalization of the RMB. Continuously build and develop a multi-channel, broad-coverage cross-border RMB payment system. Steadily develop digital RMB.