Due to disagreements over the direction of the financial policy of China, leaders are discussing whether or not to replace the Central Bank Chief.

Xi Jinping is considering removing Zhou Xiaochuan, who is the face of the Chinese economy to global markets, as part of a wide personnel change that comes amidst internal disagreements over economic changes           

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Over the course of the past few months, Zhou has pushed for market changes such as liberalizing interest rates. However, Chinese leaders are concerned that changes will add hurdles to an economy that is already struggling to meet the government's 7.5% annual growth target.

On the other hand, replacing Zhou could cause problems in the global market. His absence could add to the doubt of China's economic policy making, and the strength of leadership's devotion to overhauls at a time that other parts of the global economy are not doing well.           

One of the top contenders to replace Zhou at the People's Bank of China is Guo Shuqing, a current governor of Shandong, former banker and top securities regulator.

Within the central bank, Mr. Zhou's departure has been the topic of gossip for weeks. PBOC officials and advisers were surprised when Zhou did not attend their usual monthly meeting summoned by the central bank's monetary policy committee last September 16.           

However, Mr. Zhou may well be China's most popular economic official. President Xi named Zhou to a third term in March 2013, even though the central banker had already passed the retirement age for senior Chinese officials set at 65. Zhou Xiaochuan is now 66-years-old.

He represents China at meetings of the International Monetary Fund and Group of 20 Leading Nations. He also engages in various activities like tennis and golf with other central bankers and senior economic officials.

If Mr. Zhou is replaced, the departure would be depicted as a matter of his age, even though only one and a half years have passed since his reappointment. There are larger policy issues involved, and Zhou has been pressing leaders to stick with the changes even if doing so diminishes the growth rate of their economy.  

TagsPBOC, people's bank of china, POBC, central bank chief