, Vice Governor of the Bank, the State administration of Foreign Secretary yi said on May 3, the Exchange is the main reason for the excess liquidity in China. "Double surplus accumulation of these foreign exchange (per cent), accounted for the last ten years put in the amount of base money is much larger than 100%. "
Yi also pointed out that current Central Bank was issued by increasing deposit reserve rates, Central, and other means to around 80% recovery because foreign exchange accounted for and put in the base currency. He also said, issued by the Central Bank to use the new currency to buy most of the foreign exchange entering the China market, resulting in increased money supply and exacerbate inflationary pressures. But he added that overall, confidence in the ability to control liquidity and inflation in China. (General)
