China Press: PBOC should use OMOs as a monetary policy tool to control money supply

Dhwani Mehta FXStreet

Bloomberg reports an article published in China’s Financial News this Monday, which argues that the PBOC’s – Chinese central bank should replace the use of reserve requirement ratio with open market operations (OMOs).

Key Points:

Use them as a monetary policy tool to control money supply

Before cutting the reserve requirement ratio (RRR) China must address an "unbalanced economic structure and excessive liquidity"

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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