How did the renminbi enter the field of circulation?

The issuance of RMB banknotes is mainly achieved through the transfer of currency issuance** in the issuance treasury and the business treasury. The issuance of ** is the currency to be issued by the People's Bank of China for the state, and the issuance of ** is the printing enterprise affiliated to the head office of the People's Bank of China to print and release the new RMB issued by the treasury according to the plan; The second is the withdrawal of funds deposited in the issuance treasury of the People's Bank of China by the financial institutions that have opened accounts and the business treasury of the People's Bank of China. The vault where the issuance is kept** is called the issuance vault.

The issuance is kept by the People's Bank of China at all levels that set up the issuance library, and is under the unified control of the head office. The business treasury is a treasury established by a commercial bank for the purpose of handling daily cash receipt and payment business, and the cash it retains is the working capital of cash receipt and payment in the business activities of commercial banks, and is a component of working capital, which is often in a state of receipt and payment. When the cash in the business treasury of the basic bank of a commercial bank is insufficient to pay, it can withdraw cash from the balance of its deposit account at the local branch of the People's Bank of China, and the RMB will be transferred from the issuance treasury to the business treasury, which means that this part of the RMB has entered the circulation field; When the cash income of the business treasury is greater than its inventory limit, the excess part will be sent to the issuing treasury by the business treasury, which means that the part of the RMB will be withdrawn from circulation.

The People's Bank of China manages the issuance of RMB by preparing issuance plans, managing the delivery of issuance, etc.

Enter the market through ** wages.

The central bank's issuance of RMB into the circulation market, just like our usual buying and selling, is a process of coming and going, regardless of whether the other party is a bank, an enterprise or a Ministry of Finance, there is no process in which the central bank gives money to for no reason. Even the best public investment, in addition to taxes and land sales revenues, is raised through bank loans or bond issuance, rather than taking a lump sum of money from the central bank and investing it for no reason. Specifically, there are three ways:

Purchase foreign exchange or **, and at the same time give the seller the corresponding RMB, such as the US dollar in the hands of the export enterprise;

Buying various types of bonds, and at the same time giving the corresponding RMB to the seller of the bonds;

Loans are made to financial institutions, specifically when the financial institutions receive a deposit with the central bank, and the central bank makes an additional loan to the financial institution. For central banks, deposits are liabilities and loans are assets, and balance sheets are balanced. For financial institutions, it is the opposite, where deposits are assets and loans are liabilities, which are also balanced.

The above renminbi is generally electronic bookkeeping. After enterprises and banks get RMB, according to the relevant regulations of cash management, they go to the bank to withdraw cash banknotes to employees when paying wages and travel expenses, and this part is the printed banknotes that enter the circulation market, and then they are recovered after being damaged and replaced with new banknotes. The banknotes printed are only a small part of the renminbi, and most of them exist in the form of electronic bookkeeping.

The central bank issues currency on behalf of **, and the proceeds of the central bank belong to **, and it is ** that enjoys seigniorage.

If you are asking how the newly printed renminbi entered circulation, then I will tell you.

First of all, the RMB is paper, in the process of circulation will be damaged, then as one of the elements of China's national business card RMB to keep the face clean and tidy, to maintain the dignity of the RMB is destined to need, other banks have this responsibility and obligation to participate in the maintenance of the cleanliness of the bill, other banks will deposit to the People's Bank of China, the table forgot, the People's Bank of China is the bank's bank.

Then, the bank deposits with the People's Bank of China, in addition to the remittance method, there is also a way to pay cash, that is, to take cash to the People's Bank of China to deposit, then the amount of cash deposited is also very large, and according to the regulations on the management of the renminbi, according to whether it can continue to circulate separately and then pay into the People's Bank of China, the People's Bank of China will keep these newer coupons and destroy them to the extent that they can be destroyed.

When you get here, you will ask, then you destroy the money for others, and then come to the People's Bank of China to withdraw the money and give it? ? By the way, the newly printed money can not be used for cash withdrawals by other banks, and a large part of the newly released renminbi will be used to replace the damaged and destroyed renminbi and enter the circulation field through other banks. The People's Bank of China will also transfer the money to other banks through re-lending, re-discounting, special loans, etc., and circulate it to society through them.

The banknotes in the treasury of the People's Bank of China are not called RMB, they are called issuance, and they are called RMB only after they are taken out by other banks, and they have the function of circulation.

Moreover, it takes money to sort out, manage, and crack down on counterfeiting, not for free, and it also costs to circulate it.

If it is said that the new renminbi in the total amount is used for, my personal understanding is that the country will get this wealth. The People's Bank of China is the bank of the state, the bank of the bank, and the bank that issues the bank.

Interest, in its form, is the remuneration that the owner of the money receives from the borrower for issuing monetary funds; On the other hand, it is the price that the borrower has to pay for the use of monetary funds. Interest is essentially a part of the profit and is a special form of transformation of the profit.

Interest is the remuneration received by the owner of the fund for lending money to the state, and it comes from the part of the profit generated by the producer who uses the money to perform its operational functions. It refers to the value-added amount brought by the injection and return of monetary funds to the real economic sector, and its calculation formula is: interest = principal interest rate time.

There are two main types of interest: single interest and compound interest.

For example, if you lend 10,000 yuan, you will get back 11,000 yuan after one year, and the extra 1,000 yuan is the usage fee charged for using this year's RMB, and the interest is 10%.

The central bank issues money, and the nature of the central bank is the first institution, so it is accurate to say that the country obtains this wealth.

To put it simply, after the currency is issued, it belongs to the first bank, and the currency enters the commercial bank through borrowing and lending, and then flows into the society through loans and other forms. The state also controls the amount of money flowing into society through the regulation of bank deposit reserves.

Of course, there are other ways, such as bonds.

Answer]: The management of RMB circulation mainly includes: (1) All public and private bonds within the territory of the People's Republic of China shall be paid in RMB, and no unit or individual shall refuse to accept them.

2) No unit or individual may print or sell token coupons to replace RMB for circulation in the market. (3) It is forbidden to forge or alter RMB. It is forbidden to purchase counterfeit and altered RMB.

It is forbidden to transport, hold or use counterfeit renminbi. It is forbidden to deliberately damage the renminbi. It is forbidden to illegally use the renminbi pattern on promotional materials, publications or other goods.

4) The mutilated or defaced renminbi shall be exchanged in accordance with the regulations of the People's Bank of China, and the People's Bank of China shall be responsible for recovering and destroying them.

In fact, the bank is also a for-profit institution, and the money deposited by an individual is to be taken out for lending. Of course, lending also has the risk of bad debts, so in order to avoid risks, there is also the depositor to withdraw cash, and the money you deposit in the bank, he does not use all of it to lend, but saves it in a part of the proportion, which is what we now call deposit reserves.

The rest of the money is basically used by the bank to lend to earn interest, so as to obtain income.

First, the direction of the loan: and to the bank loan of individuals, or institutions (such as enterprises), personal loans are nothing more than to invest (including industrial investment and financial investment), or buy a house and a car, and then part of your money may flow into the market, such as the market, or buy a house, buy a car to the enterprise, and then the enterprise earns this part of the money may be between the enterprise because of the business relationship circulation, or may be between the enterprise and the individual transactions into the hands of the individual, Others will flow back to the bank as deposits or repay bank loans.

Then the funds lent to the enterprise are also used to invest in the industry, the operation of the enterprise, and sometimes the foreign trade company may have borrowed money, and the transaction with foreign countries, this part of the RMB was exchanged for foreign exchange to foreign exchange. The rest is similar to the circulation of money in the companies mentioned above.

Second, the individual withdraws cash from the bank, that is, the part of the bank used to avoid liquidity risk, there may be a part of the RMB you invested by an individual who withdraws out, and then he makes a transaction with a foreigner who comes to China to travel or do something, and then the foreigner is going to return to China, thinking that the RMB is a souvenir, and may not be exchanged for foreign exchange and directly taken out to see abroad.

In short, there will be all kinds of possibilities, and you can draw inferences from them yourself.

One characteristic is that when the renminbi circulates in the market for a certain period of time, it often flows back to the bank, and then goes through a cycle.

Well, I don't know if I can understand what I wrote above, but the general meaning should be there.

It doesn't have much impact Now the renminbi is not freely convertible. All of them were exchanged through Hong Kong.