RBI’s only task was to wage a battle against the villain of depreciation with the meagre reserves at its behest. This situation made the battle more interesting for the onlookers and hence every episode of volatility was packed with as much thrill as a 20–20 game.
At end-June, broad money M2 stood at RMB 44.3 trillion yuan, representing an increase of 17.4 percent year-on-year, lower than that at end2007. Deposits and loans of financial institutions increased in a stable manner.