Since the beginning of this year, the People's Bank of China has increased its liquidity investment. In order to support small and micro enterprises to speed up the implementation of tax rebates, the People's Bank of China has made efforts to speed up the transfer of surplus profits. By mid-April, 600 billion yuan had been delivered to the central government, mainly for residual tax rebates and transfer payments to local governments, equivalent to 600 billion yuan of base currency, which was basically the same as the reduction of global reserves by 0.25 percentage points. The annual profit of China People's Bank exceeded 1. 1 trillion yuan. Payment will be made in advance, and tax returns must be made on time. It will cooperate with other currencies. The policy maintains reasonable and sufficient liquidity. Since the beginning of this year, the central bank has guided the market interest rate to be lowered by 0. 1-0. 15 percentage points, resulting in a year-on-year decrease in corporate loan interest rate by 0.2 1 percentage point to 4.3%, the lowest point in the history of statistical data.

From the behavioral nature, the delivery and transfer of profits is the routine operation of the central bank to turn over profits to the central treasury according to law, and it is incorporated into the central treasury in the form of state-owned capital. Capital operating income is used for general expenditure of public budget. From the perspective of capital attributes, the trillion yuan generated by the central bank's profits belongs to conventional taxes, mainly from the operating income of the central bank's foreign exchange reserves in recent years, but the profits have been held for a long time and the accumulated funds are relatively small. The long-term funds released by RRR's interest rate reduction are mainly the liabilities of deposit-taking financial institutions, and the ownership is mainly residents, enterprises and institutions. The funds released by lowering the reserve ratio by 0.5 percentage points are only roughly equivalent to the profits accumulated by the central bank for many years.

The balance sheet profit of the People's Bank of China mainly comes from the operating income of foreign exchange reserves in recent years, which will not increase the tax burden of economic entities, nor will there be a fiscal deficit. The balance of profits shall be turned over to the central treasury according to law, which will not cause the central bank to overdraw the national treasury. Increase structural monetary support policies such as refinancing, and make good use of two carbon emission reduction tools: financing agriculture and supporting small enterprises. We will accelerate the increase of 654.38+0.00 billion yuan in transportation, 200 billion yuan in scientific and technological innovation, 40 billion yuan in old-age benefits and 654.38+0.00 billion yuan in institutional finance. This year, the People's Bank of China turned over the profit balance to the central government in accordance with the law, totaling more than 1 trillion yuan, which was mainly used for tax refund and government support for enterprises to support the market, stabilize employment and protect people's livelihood.

From the use point of view, part of it is used for credit and tax refund, and the other part is used for transfer payment to local finance, all of which support the real economy and will be converted into bank deposits of enterprises or residents, and eventually return to the commercial banking system and become other deposit-taking enterprises. Deposits are an increase in the reserves of banks in the central bank. Generally speaking, the size of the central bank's balance sheet has not changed, but the debt structure has been adjusted.