(Yicai) Jan. 8 -- The People’s Bank of China highlighted its goals of the international use of the Chinese yuan, widening social financing, and risk disposal during this year's annual work conference.

The central bank will promote the use of the yuan internationally in a stable, prudent, and down-to-earth manner and further improve policies and systems that facilitate the yuan's use in cross-border scenarios, the PBOC announced after the recent two-day conference held in Beijing. It will also promote the currency's use in key companies, sectors, as well as regions.

The PBOC will optimize the positioning of the yuan in clearing banks to strengthen international collaboration and boost the healthy development of the offshore yuan. It will also enhance the regulation of cross-border businesses and further build and expand such payment systems.

In terms of monetary policy, the PBOC emphasized that a prudent monetary policy should be executed flexibly, moderately, precisely, and effectively. The country should use multiple kinds of policy tools to keep a reasonable abundance of liquidity and to make the scale of social financing and money supply match the expectations of economic growth and price levels.

China should pay attention to a balanced injection of new loans, enhance the efficiency of the use of existing funds, further optimize the structure of loans, and ensure sustainable and fast growth in the scale of social financing, referring to the total amount of financing to the real economy, through this year.

The internal and external balance of prices should be taken into account to constantly deepen market-oriented reform of interest rates, solidify stability, and make fundraising costs decline across the board.

The PBOC proposed to steadily promote the prevention and disposal of financial risks in key sectors, targeting the real estate market, small and medium-sized financial institutions, as well as local government debts.

The PBOC will guide financial institutions in debt restructuring and swaps based on market principles and the rule of law to help fundraising platforms resolve debt risks.

The central bank will enhance its monitoring and analysis, targeting the housing market. It will satisfy reasonable fundraising demand coming from various types of property developers, assist smaller financial institutions in clearing debt, and strengthen the function of deposit insurance in resolving risks.

Editor: Emmi Laine