Ma Delun, Deputy Governor Of The Central Bank, Dispel Doubts About "Pool Theory"

Zhou Xiaochuan, governor of the central bank, recently proposed "

He expressed his remarks at an interview with the media after attending the 12 Shanghai World Expo financial services commendation conference.

Facing the problem of "hot money" inflow caused by the new round of quantitative easing policy of the Federal Reserve, Zhou Xiaochuan, a central bank governor recently put forward a novel viewpoint: he will hedge the hot money through total regulation, put short-term speculative capital into a pool, and release it from the pool when it is withdrawn, so as to avoid attacking the real economy.

"Pool theory" triggered speculation in the market.

In, he pointed out that the "pool" is what Zhou said is a combination of policies.

This "

In November 16, 2010, the RMB deposit reserve ratio of financial institutions will increase by 0.5 percentage points, insiders predict.

This will be a one-time pumping of about 350 billion yuan of funds.

Ma Delun emphasized in particular that the effect of raising the deposit reserve ratio is not only to freeze hundreds of billions of funds at one time, but the greater effect is that the increase of the deposit reserve ratio will change the money multiplier, thereby affecting the money supply and reducing the number of derivative deposits.

Mr Ma said that the fundamental goal of the central bank's monetary policy is to unswervingly promote economic growth by stabilizing the value of the currency. CPI reached 4.4% in October.

In the face of the continuous rising prices this year, the central bank will improve the pertinence of monetary policy and strengthen flexibility to achieve this goal.

As for whether interest rates will continue to increase during the year, he said that the policy will be changed according to the situation and will continue to enhance the pparency of monetary policy in the future.

As for some recent market heated discussions about the issue of "excessive currency," he said that the super currency was accumulated over the long term after the establishment of the central bank. He did not advocate a simple comparison between the generalized currency M2 and GDP.

He pointed out that the delivery of broad money is closely related to the turnover speed of money, and the development of financial market and real economy will also affect the turnover speed of money.

He said that China's direct financing is underdeveloped, and enterprises rely heavily on bank loans, resulting in increased cash in the banking system. So comparing M2 is a misleading one.

At the same time, he emphasized that the reform of the RMB exchange rate must be carried out. The principle is autonomy, controllability and gradualism.

It is hoped that enterprises will gradually adapt to the exchange rate reform and enhance the international competitiveness and management level of enterprises by using this "gradual" time.