china currency
The monetary policy instruments applied by the PBC include reserve requirement ratio, central bank base interest rate, rediscounting, central bank lending, open market operation and other policy instruments specified by the State Council. Article 12 of the Law of the People's Republic of China on the People's Bank of China provides " the People's Bank of China is to establish a monetary policy committee, whose responsibilities, composition and working procedures shall be prescribed by the State Council and shall be filed to the Standing Committee of the National People's Congress. The Monetary Policy Committee shall play an important role in macroeconomic management and in the making and adjustment of monetary policy."
Rules on Monetary Policy Committee of the People's Bank of China
stipulates that the Monetary Policy Committee is a consultative
body for the making of monetary policy by the PBC, whose responsibility
is to advise on the formulation and adjustment of monetary policy
and policy targets for a certain period, application of monetary
policy instrument, major monetary policy measures and the coordination
between monetary policy and other macroeconomic policies. The
Committee plays its advisory role on the basis of comprehensive
research on macroeconomic situations and the macro targets set
by the government.
The Monetary Policy Committee is composed of the PBC's Governor
and two Deputy Governors, a Deputy Secretary-General of the State
Council, a Vice Minister of the State Development and Reform Commission,
a Vice Finance Minister, the Administrator of the State Administration
of Foreign Exchange, the Chairman of China Banking Regulatory
Commission, the Chairman of China Securities Regulatory Commission,
the Chairman of China Insurance Regulatory Commission, the Commissioner
of National Bureau of Statistics, the President of the China Association
of Banks and an expert from the academia.