The People’s Bank of China is the central bank of the People’s Republic of China. It functions in much the same way as the Federal Reserve does here in the U.S. It sets monetary policy in China and is in charge of preventing and handling financial crises. It manages all of the foreign reserves, which are made up of other bonds from countries around the world, including the U.S. Much like the Federal Reserve, the People’s Bank of China manages the treasury. It is also responsible for regulating the financial system. The People’s Bank of China issues, and is responsible for the circulation of, China’s official currency, the renminbi.