More specifically, we have to adapt to the requirements of the new digital age. Being able to collect and make payments more efficiently is a key part of the digital transformation that the economy will undergo. It has the potential to enhance productivity and overall competitiveness.
The RMB equivalent to foreign exchange purchase has become the major source of base money supply while central bank lending to financial institutions accounts for a smaller share. This undermines the independence of monetary policy and makes money supply a more endogenous factor.