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Zhou Xiao Chuan: open door policy |
Zhou Xiaochuan has been governor of the People’s Bank of China since December 2002. Since his appointment he has overseen reform of the banking industry and began to gradually liberalize the exchange rate. Critics argue that he has not gone far enough on either measure. As with most policymakers, Zhou keeps his cards close to his chest. But in an interview with Euromoney he reiterates that China will not be bullied into changing its exchange rate policy, admits that the central bank is watching closely for signs that the economy is overheating, and says that the People’s Republic is keeping its dollar exposure in line with the market average.
How concerned is the PBC about overheating in the domestic economy?
The PBC has been closely watching the economic trend in China and has considered the scenario that the economy could evolve from slightly speeding to overheating. The PBC believes that the possibility of overheating needs to be carefully monitored and to be ready to take necessary risk mitigation measures.
To what extent does the PBC believe that speculative bubbles already exist in stock and real estate markets?
The PBC is observing capital markets and has reminded investors to watch out for potential risks.