China's central banker skips retirement bar to stay on

China's central bank governor, Zhou Xiaochuan, will retain his post despite reaching the compulsory retirement age of 65 and being left out of the inner-circle of the Communist Party in last year's leadership reshuffle, sources told the Post.

The top leaders reached a consensus that Zhou, who has headed the People's Bank of China (PBOC) for a decade, should keep running the central bank of the world's second-largest economy for another year or two in order to maintain China's fiscal stability and policy continuity, sources said this week.

The move came as a surprise as Zhou last month turned 65 - the mandatory retirement age for mainland officials - and was omitted from the Communist Party's Central Committee, membership of which is usually a political credential for holding such a ministerial-ranking job.

Sources said Zhou would probably be appointed a vice-chairman of the Chinese People's Political Consultative Conference next month, giving him "state leader" status and exempting him from retirement.

Bank of China chairman Xiao Gang, 54, who was made a full member of the Central Committee in November, is tipped to become party chief of the PBOC, enabling him to eventually take over from Zhou.

If Zhou had stepped down next month it would have triggered a round of reshuffles. But the new arrangement is seen by the leadership as necessary for maintaining monetary stability amid global financial volatility.