MNI China Press Digest July 18: CPPC, PBOC, Yuan

Highlights from Chinese press reports on Tuesday:

• Policymakers will focus on high-quality growth and promote stable economic development in China, according to the Chinese People's Political Consultative Conference (CPPC). At a recent H1 macroeconomic symposium attended by CPPC Chairman Wang Huning, leaders said China will achieve economic goals in a high-quality fashion, and noted the economy was steadily improving with market demand recovering. Looking forward, China will focus on stabilising growth, ensuring livelihoods and preventing risks. (Source: Yicai)
• The People’s Bank of China will likely cut the reserve requirement ratio across the broad in Q3 and continue to roll over maturing medium-term lending facilities with increased amounts, said Yan Jun, analyst at Golden Credit Rating International. Both operations can supplement medium- and long-term liquidity, while an RRR cut would send a more obvious signal to stabilise growth while reducing the cost of bank funds, said Yan. China’s benchmark Loan Prime Rate will likely remain steady in July, as the PBOC left the MLF rate unchanged on Monday, said Wen Bin, chief economist of Minsheng Bank. The LPR will release on Thursday. (Source: Securities Daily)
• Some Indian refiners have begun to use yuan for settlement of crude oil imported from Russia, as India’s imports of Russian oil hit a record high in June. The Central Bank of Argentina allowed opening CNY accounts in its financial institutions and used CNY to repay its foreign debt for the first time last month. Authorities must increase the confidence of China's economy globally and promote demand for Chinese goods if the aim is to make the yuan a reserve currency, said Tian Lihui, dean at the Institute of Finance & Development at the Nankai University. According to data from S&P Global Ratings, the proportion of yuan in global cross-border trade settlements rose to 3.2% in May from 2.1% at the beginning of this year. (Source: Securities Daily)