The People's Bank of China Monetary Policy Committee recently held its regular meeting for the fourth quarter of 2024, reiterating its stance on monetary easing while emphasizing the importance of maintaining foreign exchange stability. However, yesterday (3rd), the Renminbi still depreciated, falling below the 7.3 mark. (Background: Printing money to rescue the economy! The People's Bank of China calls for a 'shift to easing' in monetary policy for the first time in 14 years, suggesting timely reserve requirement ratio cuts and interest rate reductions) (Context: Scholars highlight four major problems in the Chinese economy, 'content too explicit' ignites social media frenzy) The People's Bank of China Monetary Policy Committee recently convened for its regular meeting for the fourth quarter of 2024. During the meeting, Chinese authorities proposed the main ideas for the next stage of monetary policy: It is recommended to increase the intensity of monetary policy regulation, enhance the foresight, targeting, and effectiveness of monetary policy regulation, and based on domestic and international economic and financial conditions and the operation of financial markets, selectively reduce the reserve requirement ratio and interest rates. Maintain ample liquidity, guide financial institutions to increase the intensity of monetary credit issuance, and match the growth of social financing scale and money supply with economic growth and overall price level expectations... Strengthen the resilience of the foreign exchange market, stabilize market expectations, and enhance market management... Firmly prevent the risk of excessive exchange rate adjustment and maintain basic stability of the Renminbi exchange rate at a reasonable and balanced level. In summary, Chinese authorities currently still maintain the previously proposed stance of monetary easing while also emphasizing the importance of maintaining foreign exchange stability. The Renminbi fell below 7.3 against the backdrop of limited prospects for interest rate cuts by the Federal Reserve and potential economic policy impacts following the election of President Trump in the United States. Recently, the US dollar has continued to strengthen, with the dollar index briefly breaking 109 points yesterday (3rd), marking a 2.38% increase over the past month. Dollar index. Source: TradingView However, in contrast, the onshore Renminbi fell below the psychological barrier of 7.3 yesterday afternoon, marking the first time since November 2023, while the offshore Renminbi also fell below 7.36, indicating that despite the continuous emphasis and measures taken by the People's Bank of China to support the currency, the effects seem not to be significant. The Renminbi has been continuously depreciating since October last year. Source: TradingView In response, Wee Khoon Chong, a senior Asia-Pacific market strategist at a New York bank, stated that with the continuous strengthening of the US dollar and the ongoing decline in domestic government bond yields, the Renminbi falling below 7.3 is inevitable. Additionally, Bank of America strategist David Hauner previously warned that if tariffs are raised to 60% on Chinese goods after Trump takes office, the Renminbi may further depreciate below the important level of 8. The Chinese stock market has plummeted. It is also worth mentioning that since the Chinese government announced a series of economic stimulus measures at the end of September last year to rescue the sluggish market, the Chinese stock market has only received a temporary boost initially before falling back into a slump. According to data from Sina Finance, key Chinese stock indices closed lower again yesterday, with investors lamenting: Shanghai Composite Index: down 1.57%, or 51.13 points, closing at 3,211.43 points Shenzhen Component Index: down 1.89%, or 190.94 points, closing at 9,897.12 points CSI 300: down 1.18%, or 45.23 points, closing at 3,775.16 points Related reports: Chinese stocks are crazy again! Brokerage apps crashed due to high traffic, economists suggest: Record deficits accelerate stimulus for the Chinese economy. ADRs plunge nearly 30%, ringing the alarm for declining revenues, is the Chinese economy in serious trouble? Wall Street speculation on cryptocurrency is illegal! China rules that overseas cryptocurrency investment profits will be confiscated, what do lawyers say? "The Renminbi depreciates against the US dollar, falling below 7.3! The People's Bank of China: We must stabilize the exchange rate and adhere to the stance of monetary easing" this article was first published by BlockTempo (the most influential blockchain news media).