What is PBOC?
PBOC stands for the People’s Bank of China. It is the central bank of the People’s Republic of China and is responsible for formulating and implementing monetary policy in mainland China. The PBOC was established on December 1, 1948 following the adoption of the Constitution of the People’s Republic of China. It acts as a government-owned financial institution with close ties to both domestic and international financial markets, providing banking services such as deposits, loans, insurance products, asset management services, securities trading services, foreign exchange transactions and other activities associated with banking operations. Its main functions include issuing currency (Renminbi), regulating interest rates, controlling inflation levels by setting reserve requirements for banks and other institutions operating in mainland China, performing national fiscal stabilization duties by managing public debt issues and supervising Chinese commercial banks. As part of its role in promoting economic development within this rapidly growing economy it also administers foreign investment regulations as well as playing an active role in maintaining macroeconomic stability through its participation in global capital markets.
