Monetary lineup is reshuffled

PUBLISHED : Tuesday, 17 June, 2003, 12:00am
UPDATED : Tuesday, 17 June, 2003, 12:00am

The mainland's central bank yesterday announced it had reshuffled its monetary policy committee following the government restructuring in March.

The committee, which meets regularly to discuss China's interest rates and foreign exchange rates, will be headed by Zhou Xiaochuan, governor of the People's Bank of China.

To reflect the government restructuring, the chairman of the newly formed China Banking Regulatory Commission, Liu Mingkang, has been included as one of the new members.

Other members include a deputy secretary-general of the State Council, Long Quan; a deputy minister of finance, Jin Liqun; a deputy chairman of the State Development and Reform Commission, Zhu Zhixin; two deputy central bank governors, Wu Xiaoling and Li Ruogu; and Bank of China president Xiao Gang.

The China News Service said unlike its predecessor, the new committee, for the first time, includes a deputy secretary-general of the State Council in its ranks.

Mr Long's inclusion is apparently designed to strengthen co-ordination between the committee and ministries and to emphasise the central government's determination to rely on financial methods, such as interest rates, to fine-tune the economy.

'After adjustment, the new committee can better reflect the views of the banking sector,' the news agency said.

The mainland has relied increasingly on adjusting interest rates to regulate the economy. The China News Service said the committee held 21 meetings from July 1997 to January this year to discuss issues such as interest rates and money supply.

Economists have said that adjustment of interest rates was a key element behind the government's efforts to check deflation, which has plagued the mainland's economy for the past two years.