The People's Bank of China and the Yuan
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The Role of the PBOC
The People's Bank of China (PBOC) is the central bank of the People's Republic of China. Its primary responsibility is to manage and operate the Chinese yuan, also known as the renminbi. This currency serves as the official monetary unit of China and is used in all financial transactions within the country.
Monetary Policy and Stability
The PBOC plays a crucial role in regulating the yuan and ensuring its stability. It sets monetary policies that impact exchange rates and overall economic conditions related to the currency. These policies aim to maintain a healthy balance between inflation and economic growth.