Xia Bin, a counselor of the State Council and former central bank advisor, has called for accelerated interest-rate and foreign exchange rate liberalization as part of efforts to curb excessive money supply, the Economic Information Daily reported Monday. China’s M2-to-GDP ratio has hit nearly 180 percent in 2012. The excessive money supply is hiding risks, which will exert pressure on inflation and partly cause property bubbles, Xia was quoted as saying. It is time now for authorities to take action to turn around the situation of excessive money supply, he noted.
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