A Chinese central bank advisor says China needs to continue implementing an appropriate monetary tightening policy, including the use of open market operations and bank required reserve ratio increases.

Xia Bin, who sits on the central bank's monetary policy committee, said in an article published on Monday that the government needs to let the yuan appreciate against the U.S. dollar and raise interest rates to help adjust the country's economic structure.

Xia Bin said the most important task for monetary policy in the coming years is how to digest a huge monetary stock of 76 trillion yuan, which is related to whether China can maintain basic stability of prices.

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