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MNI: PBOC Should Adjust Liquidity Through.....>

CHINA
CHINA: MNI: PBOC Should Adjust Liquidity Through RRR, Officials say
- The People's Bank of China (PBOC) should provide liquidity through adjusting
the Reserve Requirement Ratio (RRR) instead of expanding its balance sheet,
according to an article by officials from the central bank. China's RRR is still
relatively high, with significant room for adjustment and strong operability,
according to the article published in the December Issue of China Bond and
co-authored by Ruan Jianhong and Huang Jianyang. Both authors work with the
Financial Survey and Statistics Department of the PBOC. Adjusting liquidity
through the RRR has comparative advantages as the tool can be applied to all
commercial banks in China, according to the article. Other tools such as MLF
only target big banks.
- For full story see MNI Main Wire at 02:53 GMT 01/03 or contact
sales@marketnews.com for access.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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