Select a page

Banking News

China's money supply watched closely

China’s money supply watched closely

(9 May 2013 – China) Data from the People’s Bank of China (PBOC) has shown that at the end of last year China’s M2 (broad money supply) was 97.4 trillion yuan (A$15.3 trillion) and 188 percent of the country’s gross domestic product.

As the world’s currencies catch up to China’s massive liquidity growth, Standard Chartered Bank said China ranks first world-wide in terms of overall M2 and newly issued currency.

In 2011 China accounted for about 52 percent of the world’s added liquidity.

Since then, China has taken steps to open up its economy with more liberal reforms and the government monetising resources, therefore fuelling rising demand for currency.

From 2003 to 2012, China's annual GDP growth averaged 10.5 percent, while prices rose by only 3 percent annually.

The unprecedented speed and scale of China's monetary expansion has become a concern with the Bank for International Settlements keeping a close eye as Basel III tests continue throughout the rest of the world.

East & Partners's avatar

Comment on this article


Your comments will not be published. Required fields are marked *


Please enter the word you see in the image below:


Subscribe to our mailing list

Sign up now to keep up-to-date with the latest
market news and insights in B2B banking.

* indicates required

For more information please read our Terms and Conditions and Privacy Statements.