Zhou Xiaochuan, Governor of the People's Bank of China (JIANG XIAOYING)

China will adjust its monetary policy according to changes with the country's economic indicators and feedback from policy implementation, said Zhou Xiaochuan, Governor of the People's Bank of China, the central bank.

The government will continue with a moderately easy monetary policy but at the same time closely follow the inflation issue and unfolding economic scenarios, Zhou said, noting that inflation control will be more complicated this year.

China will eventually have to withdraw its economic stimulus package sooner or later, but the timing must be treated with great caution, Zhou added.

The country will enhance the focus and flexibility of its policies and strike a balance between inflation expectation management and maintaining sound growth, he said.

Zhou also showed concerns about China's holdings of U.S. dollar assets. China is currently the biggest foreign holder of U.S. Treasury debts, but recent depreciation of the U.S. dollar has aroused concerns about safety of the dollar investments. The greenback is still a key currency in global trade, and China will closely monitor its trend in value against other currencies, Zhou said.