These are the highlights of the central bank's balance sheet that I have seen recently, and I want to share them with you. I hope to correct my mistakes.

First, put in the base currency

The reserve currency in the balance sheet is the amount of base money put in by the central bank. Among them, currency issuance includes M0 and cash on hand in commercial banks; The deposits of other deposit companies are the deposit reserves of commercial banks in the central bank, including statutory reserves and excess reserves.

Reserve currency is the main responsibility of the central bank. Its net increase or decrease is the net investment or net withdrawal of the base currency. It is different from the "net cash delivery or net withdrawal this month" in the monthly financial statistics of the central bank. The net cash input or withdrawal this month is the difference between M0 of this month and M0 of last month. It is only a part of the net investment or withdrawal of the base currency.

The growth rate of currency issuance should be coordinated with the growth rate of GDP, otherwise it will contribute to inflation or deflation.

The reserve ratio provided by the central bank will increase the statutory reserve of commercial banks in the central bank, and at the same time, it will lead to a decrease in the excess reserve of commercial banks. In other words, it has little influence on the base money, but raising the reserve ratio inhibits the monetary expansion ability of commercial banks (its monetary expansion multiplier becomes smaller)

Two. Allocation of central bank assets

From the balance sheet, we can see the allocation of central bank assets. At present, the allocation of foreign exchange assets of the Bank of China accounts for 82%. Followed by the creditor's rights to the deposit company and the creditor's rights to the government. This is the main reason for the growth of the base currency.

Three. Stock of central bank bills issued

The "issuance of bonds" in the balance sheet corresponds to the stock balance of central bank bills. It is part of the central bank's withdrawal of funds. In addition, when the central bank sells treasury bonds or other bonds, it also leads to the withdrawal of money, which is manifested in the reduction of government bonds or other creditor's rights in the balance sheet, the deposits of deposit companies in the corresponding reserve currencies will also decrease, and the liquidity of money will shrink. or vice versa, Dallas to the auditorium