Monetary operations in China

This Bank of Japan Working Paper suggests that the People's Bank of China's money market operations have been focused mainly on China-US interest rate differentials for the sake of stability in the Renminbi exchange rate after the July 2005 reform.

The authors suggest that while monetary operations have used to ensure exchange rate stability, the Chinese authorities have "direct control measures" to ensure price stability. "These direct control measures include 'window guidance' to commercial

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