1, deposit reserve ratio

By adjusting the deposit reserve ratio, the central bank can influence the credit expansion ability of financial institutions, thus indirectly regulating the money supply. For RMB deposits in financial institutions, the statutory deposit reserve shall be assessed according to the ten-day period and the withdrawal base shall be determined according to the general deposit balance at the end of the ten-day period.

2. rediscount interest rate policy

The central bank controls the money supply by controlling the rediscount rate. When there is a domestic inflation trend or the existing inflation intensifies, the central bank will raise the rediscount rate, increase the financing cost of commercial banks, and force them to tighten credit, thus curbing the price increase.

3. Open market business

The central bank regulates the money supply by buying and selling securities and handling the base money. Different from the securities trading of general financial institutions, the purpose of securities trading of the central bank is not to make profits, but to regulate the money supply.

According to the development of the economic situation, when the central bank thinks it is necessary to tighten the money supply, it will sell securities accordingly, recover part of the base currency and reduce the amount of funds available to financial institutions; On the contrary, when the central bank thinks it is necessary to relax monetary policy, it will buy securities to expand the base money supply and directly increase the amount of funds available to financial institutions.

Extended data:

The open market operation of China People's Bank is conducted once a week in principle, and its development has the following characteristics:

1. Constantly expand trading objects. The open market business implements the first-class dealer system. The People's Bank of China has selected some commercial banks with strong strength, standardized management, good asset quality and high credit standing, which can undertake large bond transactions as primary dealers in the open market business.

2. Gradually enrich the types of trading terms. At present, there are 6 varieties due: 7 days, 14 days, 28 days, 9 1 day, 182 days and 365 days. In operation, according to the camera selection of commercial banks, the actual operation is mostly 7 days, 14 days.

3. Continuously expand trading tools. National debt and policy financial bonds are both operating tools for open market business.

4. Try different trading methods. Since the open market business resumed trading, different bidding methods such as price bidding and quantity bidding have been adopted. Price bidding takes interest rate or price as the target, aiming at discovering the actual interest rate level in the interbank market and the expectations of commercial banks for interest rates.

5. While actively carrying out repurchase transactions, increase the operation of cash coupons. In 2000, a total of103.2 billion yuan was loaned to commercial banks, including 7.21billion yuan for bond repurchase and 310/billion yuan for cash purchase, which effectively expanded the base money supply, increased the bond assets of the People's Bank of China and improved the bond asset structure.

6. Formulate relevant fund settlement rules and operating procedures for bond trading. Relying on the communication network of the Central Government Bond Registration Company, the People's Bank of China has developed the open market business bidding, tendering and bid-winning trading system, which has been continuously upgraded, realizing the smooth transition of the Y2K problem and providing good technical support for the development of the open market business.

Baidu encyclopedia-deposit reserve ratio

Baidu encyclopedia-rediscount rate

Baidu Encyclopedia-Open Market Business