The main contents of the reform of legal tender include: taking the banknotes issued by the Central Bank, Bank of China and Bank of Communications (later the Farmers Bank of China) as legal tender; Prohibit the circulation of silver, nationalize silver and transfer it abroad as foreign exchange reserves; It is stipulated that the exchange rate is legal tender 1 RMB is equal to GBP 1 shilling 2.5p, and the three banks can buy and sell foreign exchange without restriction.

Extended data:

The reform of legal tender unified the national currency, which effectively promoted the development of commodity economy and the formation of a unified domestic market; Due to the decoupling of legal tender from spot silver, China's currency has completely got rid of the influence of world silver price fluctuation, and because legal tender is linked to pound, it can circulate in the world market, which is beneficial to China's foreign trade development and international balance of payments.

At the beginning of the issue of legal tender, it was stipulated that the silver dollar should be exchanged for one yuan, but in actual exchange, 60% of the silver can be exchanged for 100% of the legal tender, so the circulation of paper money increased, and then the legal tender was issued one after another, which eased the shortage of money in the past, prices began to pick up, and commerce and production were profitable, which stimulated the prosperity of commerce and the development of industrial production.

Baidu Encyclopedia-Legal Monetary Policy

Baidu encyclopedia-legal tender reform