Key practical points:
• The central bank formulates and implements monetary policy under the State Council's leadership.
• It alone has the right to issue the national currency, the renminbi (人民币), and manage its circulation.
• It manages the official gold and foreign-exchange reserves.
• It may not lend to the government to cover deficits or buy government bonds directly at primary issuance.
• It oversees clearing and payment systems and supports anti-money-laundering work.
Law on the People's Bank of China · Yalla China
中华人民共和国中国人民银行法 / Law on the People's Bank of China
Enacted: 1995-03-18 ✅ Effective: 1995-03-18
📝 Overview
A law defining the functions of China's central bank: setting monetary policy, issuing the renminbi and overseeing financial stability. It bars the bank from directly financing government deficits.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
This law explains why the central bank is relatively independent in managing currency and liquidity, which drives interest rates and the renminbi exchange rate that matter to you as an investor or trader. General orientation, not legal advice.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026