Thursday, February 22, 2018
Bank of China includes Monetary Fund in M2 statistics
ANBOUND
In January of this year, the People's Bank of China formally included the Monetary Fund in the scope of M2 statistics. This means that the central bank has expanded the statistical size of M2; which is the practice of the United States and the European Union. After adjustment, the current M2 balance expanded by RMB 1.15 trillion, while M2 balance expanded by RMB 824.9 billion in the same period of last year. This also means that the Monetary Fund has formally assumed the monetary function, and the state has always put stringent regulations on the security and stability of the currency. Therefore, the Monetary Fund may face more stringent supervision in the future.