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Stepping into 2021, the People’s Bank of China (PBOC) pledged to maintain a prudent monetary policy, which is flexible, precise, reasonable and moderate, Xinhua reports, citing a statement posted on the central bank’s website.

Key takeaways

“To create a sound monetary and financial environment to quicken the establishment of the new development paradigm.”

“The country will improve the mechanism for regulating the money supply, and keep the macro leverage ratio basically stable.”

“China will deepen the market-oriented reform of interest rates and exchange rates, and keep the yuan’s exchange rate generally stable on a reasonable and balanced level.”

“Will support mid and small-sized lenders to replenish their capital through multiple channels, improve the legal system in the bond market, and promote the internationalization of the yuan in a prudent manner.”

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