The following is an excerpt from Bloomberg.com | March 18, 2018 |
China named Yi Gang to run its central bank, the Wall Street Journal reported, elevating a long-serving deputy governor with deep international links to the forefront of efforts to clean up the nation’s financial sector and modernize monetary policy.
The National People’s Congress, China’s legislature, will almost certainly approve President Xi Jinping’s choice for governor of the People’s Bank of China in a formal vote due Monday. Representatives of the NPC were not immediately available for comment.
By promoting an official who has served as deputy governor for more than a decade, China is signaling that it is seeking policy continuity with his predecessor, Zhou Xiaochuan. Now set to retire, Zhou has steered the institution through the global financial crisis, overhauled monetary policy tools and overseen the elevation of the yuan to reserve-currency status during his record 15-year term.
Yi inherits an institution that, while more influential at home and abroad than the one that Zhou took over in 2002, faces much more complex challenges. The most pressing will be pushing forward with Xi’s financial cleanup without crashing an economy that’s heading toward a debt-to-output ratio exceeding 300 percent.
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