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Yi Gang, the central bank's deputy governor, takes questions from journalists at home and abroad during an ongoing press conference on March 12, 2015. [Photo / Xinhua]

Yi Gang, the central bank's deputy governor, highlighted that a "proactive fiscal policy and prudent monetary policy" is the proper combination to deal with the current industrial deflation.

China's Producer Price Index has dropped for 37 consecutive months, indicating deflationary risks in the sector. The price decrease pressure is faced by the whole world when oil and other commodity prices keep failing, he said.

Deposit insurance system likely in H1

China will implement deposit insurance system in the first half of this year, said Zhou.

As an important process of economic reform, deposit insurance system has garnered positive results after soliciting opinions from the public, Zhou said, adding that the timing is right to implement the system.

Zhou Xiaochuan (third from right), governor of People's Bank of China, and Yi Gang (fourth from right), head of State Administration of Foreign Exchange, take questions from journalists at home and abroad during an ongoing press conference on March 12, 2015. [Photo / Xinhua]

Yuan restrictions in Taiwan to be eased

The 20,000 yuan per person per day limit of renminbi currency conversions for Taiwan residents will be loosened as renminbi business develops and demand grows, said Zhou.

The Taipei branch of Bank of China has been engaged in the renminbi offshore settlement and clearance business.