Zhou Xiaochuan, governor of the People's Bank of China (PBOC), answers questions from journalists during a press conference on monetary policy and financial reform on the sidelines of the Fifth Session of the 11th National People's Congress(NPC)in Beijing, capital of China a, March 12,2012. (Xinhua/Wang Peng)

The governor of China's central bank said Monday that a slow world recovery process and the unstable economic and financial situation in Europe will be the biggest uncertainty for China's economy this year.

Zhou Xiaochuan, governor of the People's Bank of China (PBOC), made the remarks at a press conference on the sidelines of the ongoing annual parliamentary session.

Yuan's exchange rate decided by market

A trade deficit in the first two months this year and its impact on the exchange rate of Renminbi is "a good thing" for China, the governor of China's central bank said Monday.

The supply and demand relations in the market are playing an increasing role in deciding the exchange rate of the Chinese currency, Zhou Xiaochuan, governor of the People's Bank of China (PBOC), said at a press conference on the sidelines of the ongoing annual parliamentary session.

Lowered RRR not to boost stock, property market

China's central bank governor said Monday that cuts on reserve requirement ratio (RRR) were not to boost capital market confidence or improve property market liquidity.

Central bank: no plan for larger banknotes

Hu Xiaolian, deputy governor of the People's Bank of China, the central bank, said here Monday that the central bank is not planning to issue larger denomination banknotes in the short term.

China to continue diversifying holdings of foreign bonds

China's chief foreign exchange regulator said Monday China will continue to implement the principle of diversifying its investment in foreign bonds, saying its holdings of eurozone bonds did not register losses as a portfolio.

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