China’s monetary assets exceed RMB100 million
(26 April 2013 – China) For the first time ever, China’s money supply has exceeded RMB100 trillion (A$15.7 trillion), reaching RMB 103.61 trillion in March.
The People's Bank of China (PBoC) said China’s M2 or the total amount of monetary assets it holds, reached RMB103.61 trillion in March.
This total was 15.7 percent year-on-year, and 0.5 and 1.9 percentage points higher, respectively, than that at the end of March 2013 and the full year of 2012.
The Chinese Academy of Social Sciences said M2’s fast growth was due to demand from the real economy and the continued rise in outstanding foreign exchange funds.
China’s fast economic growth in recent years demanded more money while the deepening monetization process of social assets also demanded more money.
Chinese Government financial experts said the scale of China’s M2 basically meets the actual demands of economic development.
In their opinion, it is not correct to judge inflation only through the high absolute amount of the M2 and the high currency ratio to GDP.
China’s M2 to GDP ratio is close to 190 percent.
The government said a lot of effort will be made to advance economic transformation and optimize financing mode to keep a moderate rise in the money supply.
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