In its effort to turn the yuan into an international currency by 2020, China plans to institute a series of economic and financial reforms over the next five years, central bank governor Zhou Xiaochuan said in an article in Caixin, according to Reuters.
Zhou wrote that that the People’s Bank of China will become more transparent in its monetary policy by improving communications and providing more guidance to market expectations.
The reforms are part of the recently proposed 13th Five-Year economic plan for the years 2016 to 2020. Zhou said they are intended to strengthen supervision of China’s financial system to prevent “systemic risk.”
The comments seem to be an attempt to counter fears that China is moving away from its commitment to comprehensive financial reforms.
The fears grow from a series of government interventions over the past six months, specifically, the many moves to temper the stock market rout over the summer and the surprise currency devaluation in August.
China “will effectively use and develop financial risk control tools, and reduce levels of leverage so as to prevent systemic risk,” Zhou said according to Reuters but offered few details.