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.

Comment on this article


Your comments will not be published. Required fields are marked *


Please enter the word you see in the image below:


Subscribe to our mailing list

Sign up now to keep up-to-date with the latest
market news and insights in B2B banking.

* indicates required

For more information please read our Terms and Conditions and Privacy Statements.