China relaxes grip on yuan in policy shift

Article Abstract:

The People's Bank of China, China's central bank, has allowed market forces to dictate the yuan's exchange rate against the US dollar. The central bank had been undertaking intervention to keep the currency from climbing against the American greenback. The shift in monetary policy is expected to allow the yuan to rise to 7.8 to the dollar by the end of 1995. While a robust yuan will hurt exporters and affect investments, it will be a buffer against inflation and will minimize the effect of the equally strong yen on China's yen-denominated loans.

Currency Stabilization Programs, Economic aspects, Central banks, Currency stabilization, Yuan (China), People's Bank of China

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China moves again to curb inflation rate

Article Abstract:

Chinese economic officials have banned state-owned companies from making large and medium fixed-asset investments and raised interest rates on Treasury bonds and fixed bank deposits in a bid to reduce inflation to aroundn 15% by the end of 1995. Analysts praised the move, although many remained skeptical considering the failure of similar policies in the past. The ban on investments primarily covers real-estate investments and is geared to reduce the availability of bank loans for investment purposes.

Price Levels, Domestic Monetary Policy, Deposit Interest Regulation, Inflation (Finance), Public investments, Banking law, Wage price policy, Inflation (Economics)

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China banks get freer hand

Article Abstract:

China intends to authorize banks to determine interest rates in keeping with the country's efforts to commercialize its tedious banking system. The decision would spur banks to lend and offer the capability to price loans based on the risks involved. The country has facilitated changes in its financial sector in light of the banking woes that are besieging other Asian countries.

Loan Interest Regulation, Banking industry, Management, Government regulations

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