China Central Bank Pledges Credit Support But a Stable Yuan

China’s central bank said it will give more credit support for the real economy but keep the yuan stable, its governor said on Saturday.

“We will keep liquidity reasonably ample, increase credit support to the real economy,” Governor Yi Gang said during a parliament session on Friday, reaffirming the central bank’s strategy for economic recovery.

China’s economy rebounded at a faster than expected rate in the third quarter after being hit by a property slump, persistent Covid-related curbs, and a looming global recession.

$28 Billion Loan

The central bank will make 200 billion yuan ($27.6 billion) available in special loans to ensure the delivery of stalled housing projects, Yi said.

China also plans to enhance financial supervision, he said, adding that the country disposed of non-performing assets in the banking sector worth more than 12 trillion yuan between 2017 and 2021.

“Going forward, China has the conditions to maintain a normal monetary policy as long as possible and maintain the stability of the currency’s value.”