Sunday, the Chinese central bank said it will implement moderately loose monetary policy and maintain the continuity and stability of policy. The People's Bank of China added that it would provide ample liquidity to ensure money supply and loan growth to meet the needs of the economy.

The central bank noted that there is ample liquidity in the banking system and the financial system is running smoothly.

A report released by the central bank on Saturday showed that M2, the broadest measure of money supply grew 25.5% to 53.06 trillion yuan at the end of March 2009. Meanwhile, foreign currency reserves totaled US$1.95 trillion, up 16.14%.

Banks provided yuan-denominated loans of 1.89 trillion yuan in March and credit reached 4.58 trillion yuan in the first quarter. Credit extended by banks in the first quarter stands near the government's full year target of 5 trillion yuan.

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