The State Council has on Monday announced a change to the composition of the monetary policy committee of the People's Bank of China (PBOC). The change sees seven new members being appointed to replace seven others.

According to Xinhua, the PBOC announced that four government officials - National Development and Reform Commission deputy leader, Lian Weiliang; deputy Finance Minister, Shi Yaobin; the leader of China Banking Association, Tian Guoli; and deputy governor at the People's Bank of China, Zhang Xiaohui - have been chosen to replace the former National Development and Reform Commission deputy leader, Zhu Zhixin; the former leader of the National Bureau of Statistics, Ma Jiantang; the former vice governor of the People's Bank of China, Hu Xiaolian; and the head of China Development Bank, Hu Huaibang.

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Additionally, three high ranking economic professors have also been appointed to replace three economists as advisers to the monetary policy committee. The PBOC announced that Bai Chongen, Fan Gang and Huang Yiping have been chosen to replace Song Guoqing, Qian Yingyi and Chen Yulu.

The role of the committee, which meets quarterly, is to advice the People's Bank of China on formulating and changing its monetary policies.

It is currently unclear why the state council decided to replace some officials in the 15-member monetary policy committee. The People's Bank of China (PBOC) is reportedly trying to cut down long term interest rates to revive the slowing economy, according to Reuters. Policy insiders have revealed that thus far, the attempts to encourage banks to lend more and bring down their interest rates have not been successful. Therefore, the bank is reportedly looking to inject long-term liquidity, while cutting down on short-end cash.

Meanwhile, in an attempt to make the yuan an international reserve currency, the central bank has announced that it will open the doors for foreign investors to enter China's bond market. The central bank made this announcement in a report released last week, in which the PBOC also vowed to reduce the restrictions on Chinese investors from buying into foreign assets, the Wall Street Journal reported.

TagsPeople's Bank of China (PBOC), yuan foreign reserve currency, China central bank monetary policy committee, monetary policy committee 7 members changed