The People's Bank of China: Resolutely deal with market order disturbances and resolutely guard against exchange rate risks.

The People's Bank of China released the first quarter report on the implementation of China's monetary policy in 2025, mentioning the implementation of moderately loose monetary policy. Based on the domestic and international economic and financial situation and the operation of the financial market, flexibly grasp the strength and pace of policy implementation, maintain adequate liquidity, ensure that the scale of social financing and the monetary supply growth are in line with economic growth and the expected target of the overall price level. Promoting a reasonable rise in prices is an important consideration in guiding monetary policy, and efforts should be made to keep prices at a reasonable level. Smooth the transmission mechanism of monetary policy, further improve the framework for interest rate regulation, continuously strengthen the implementation and supervision of interest rate policies, reduce the cost of bank liabilities, and promote a decrease in the overall financing costs of society. Utilize monetary policy tools for both total and structural functions, adhere to focusing on key areas, moderate and appropriate measures, guiding financial institutions to support technology finance, green finance, inclusive small and micro enterprises, expanding consumption, and stabilizing foreign trade. Adhere to a market-based, managed floating exchange rate system based on supply and demand, referencing a basket of currencies, maintain the decisive role of the market in the formation of exchange rates, enhance the resilience of the foreign exchange market, stabilize market expectations, resolutely correct pro-cyclical behavior in the market, resolutely deal with actions that disrupt market order, resolutely guard against the risk of exchange rate overshooting, and maintain the stability of the RMB exchange rate at a reasonable and balanced level. Explore and expand the functions of the central bank in macro-prudential and financial stability, maintain financial market stability, and resolutely hold the line against the occurrence of systemic financial risks.