China s bank pledges global cooperation

October 11, 2008 12:00 am

, BEIJING, October 11 – China’s central bank has pledged to continue international cooperation to tackle the global financial crisis and maintain market stability, according to state media.

The pledge on Friday came after China this week joined the US Federal Reserve, the European Central Bank and other major central banks to cut interest rates in response to the global financial turmoil and fears of a domestic slowdown.

"The PBOC (People’s Bank of China) will continue close contacts and cooperation with counterparts and international financial organisations to jointly maintain stability of global financial markets," PBOC spokesman Li Chao told Xinhua news agency.

The PBOC would monitor the crisis and take action to guard against financial risks, Li said.

The global economic slowdown had reduced demand for Chinese exports and affected China’s economy, he added.

But Li was confident that China could ride out the crisis, according to Xinhua.

"China has a huge domestic market and the liquidity is abundant," he said.

"As long as we take strong measures to boost domestic demand, the economy has big potential for sustainable growth."

A PBOC statement on the third-quarter meeting of its monetary policy committee said it would take flexible and prudent macro-economic control measures to boost economic growth, according to Xinhua.

Foreign ministry spokesman Qin Gang said Thursday that the international community should remain confident and work together to overcome the current difficulties.

China has the world’s highest foreign reserves at more than 1.8 trillion dollars, the second most US Treasury bills and an economy expected to grow nine percent in the next year.

Some experts say China is likely to be the main driver of global growth as some of the developed world slides into recession in the wake of the credit crunch which sparked the global financial crisis.


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