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Money supply grows fast: PBOC (11/12/03)

China's money supply continued fast growth while RMB loans from all financial institutions increased more slowly in October than in previous months, the People's Bank of China (PBOC) announced on Nov.12.

    A report released by the central bank described the country's financial sector as "healthy and stable" last month. "Relevant policy adjustments and a series of signals from the central bank are functioning well," it said.

    By the end of October, outstanding broad money (M2) was 21.45 trillion yuan (2.58 trillion US dollars), up 21 percent from a year ago. Outstanding narrow money (M1) was 8.03 trillion yuan (967.47 billion dollars), increasing 19.6 percent over the same month last year. And outstanding money in circulation (M0) rose 14 percent to 1.83 trillion yuan (220.48 billion dollars).

    The PBOC said China's money supply was still on the fast side since the growth of M2 was 11.8 percentage points more than the year-on-year gross domestic product increase and consumer price index hike for the first three quarters of the year.

    The growth of RMB loans from all financial institutions in China slowed in September and October, though by the end of last month outstanding RMB loans still stood at 15.67 trillion yuan (1.89 trillion dollars), an increase of 23.3 percent on an annual basis.

    Outstanding foreign currency loans jumped 28.4 percent to 128.2 billion dollars at the month end.

    Official figures also show that outstanding RMB and foreign currency deposits, including corporate deposits and individual savings deposits, amounted to 21.65 trillion yuan (2.61 trillion dollars) in all Chinese financial institutions at the end of October, increasing 21.2 percent.

    In the interbank market, transactions were brisk with the market interest rate keeping an upward trend, the report said.

    The exchange rate of the RMB was 8.2767 yuan to one US dollar at the end of October, remaining stable.

    A spokesman for the PBOC said the central bank would seek to maintain the sound trend of China's economy and financial industry, make monetary policies and macro-control more foresighted and scientific, continue pursuing a stable monetary policy and keep a stable yuan.

 


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