The nation should be flexible in implementing appropriate monetary policy and maintain reasonably ample liquidity, People's Bank of China (PBOC) Governor Zhou Xiaochuan said at a IMF meeting in Washington over the weekend.
The central bank head urged all participants to take forceful measures to promote a global recovery, including refraining from the use of trade and investment protectionism.
China's economy got off to a good start in 2016, with indicators showing an obvious pick-up and the growth of the services sector outpacing that of the manufacturing industry, Zhou said in remarks delivered at a meeting of the IMF's International Monetary and Financial Committee.
He said that China should vigorously pursue supply-side structural reform and achieve a better balance of economic growth, structural adjustment and risk prevention.
At a separate G20 meeting in Washington last week, Zhou said that China's foreign-exchange market has stabilized and the yuan's recent trend reflects market supply and demand. He said the currency has held steady against a basket of currencies.
He called for the expanded use of the IMF's Special Drawing Rights (SDR) reserve unit to resolve "flaws" in the international currency system and said China is actively studying plans to issue SDR-denominated bonds.
Also over the weekend, Finance Minister Lou Jiwei said at a G20 meeting that China aims to implement more forceful fiscal policies including increasing its deficit and reducing taxes.
The nation will also reduce production capacity and inventory in the iron, steel and coal industries, and provide training and make other arrangements for those who lose their jobs, he said.
Also, China will control rising provincial government debt levels, he said.
The central government's debt levels are not very high, Lou said, so China will increase its central government debt to reduce leverage nationwide.
