Take RMB as an example

(1) Propose the RMB issuance plan and determine the annual money supply. Every year, the Head Office of the People's Bank of China proposes a currency issuance and withdrawal plan based on the country's economic and social development plan, and submits it to the State Council for approval before implementing it in detail. Including being responsible for the design, printing and reserve of banknotes.

(2) The State Council approves the money supply plan submitted by the People's Bank of China.

(3) Allocate issuance funds. The issuance fund is currency to be issued that is held by the central bank for the country. It is a reserve fund for currency issuance and does not have the nature of currency. It is kept by the People's Bank of China at all levels that has set up an issuance treasury and is under the unified control of the head office. The right to use the issuance fund belongs to the general treasury

(4) Ordinary banking business Daily cash receipts and payments in the treasury. The currency issuance of RMB is mainly realized through the cash collection and payment business activities of commercial banks. After each commercial bank transfers the issuance funds from the People's Bank of China's issuance library to the business library, and then pays them from the business library to various units and individuals through cashiers, the RMB banknotes enter the market. This is called a "cash drop."

At the same time, each commercial bank must collect a certain amount of cash from the market every day. When the currency inventory in the business library exceeds the prescribed limit, the excess must be sent to the issuance library for safekeeping. This is called "cash return." The process of currency returning from the issuance library to the business library is called "exit", that is, currency issuance; the process of currency returning from the business library to the issuance library is called "in", that is, currency withdrawal.

Extended information

The current currency issuance system actually refers to the issuance system of credit currency that cannot be redeemed. The currency issuance system of Western countries inherits the management methods for the issuance of bank notes and emphasizes state supervision to ensure the appropriate issuance of currency and maintain the stability of the currency value of the country and even the region. Almost all countries have concentrated currency issuance rights in their respective central banks, stipulated maximum issuance limits and conditions for flexible issuance, and stipulated corresponding issuance guarantee conditions.

my country's currency issuance power is concentrated in the People's Bank of China, which implements a high degree of centralized management and adheres to the principle of economic issuance. Except for the People's Bank of China, no region, no unit, or any individual is allowed to issue any currency or disguised currency, and no one has the right to use the country's currency issuance fund. The yuan is issued through the state bank credit procedure.

Baidu Encyclopedia-Currency Issuance