Banking News

China to stem money flood

China to stem money flood

(China) China has moved to curb potential inflation by issuing a record number of weekly commercial bills designed to peg back excessive money supply growth. The central bank said it will issue some US$6 billion worth of short-term commercial bills this week.

In a statement, the People’s Bank of China said it had issued the bills "to maintain stability in the growth of base money and interest rates on the currency market".

Some bankers have attributed the flood of money in circulation to speculators pouring in funds in the hope that the Chinese government will let the yuan strengthen.

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