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China Central Bank counselor, the central bank investigation and statistics, the original director of Sheng Songcheng latest said that the central bank does not mean that the contract does not mean tightening, expansion does not mean that the currency to relax; China's central bank if the table is not active, and there is no large number of tables, At present, China still maintains a sound neutral monetary policy.

The China Financial Times quoted him as saying in a forum on Wednesday that the central bank's balance sheet and the US central bank balance sheet are very different. The US is taking the initiative, Scales are not active, and there is no problem with a large number of tables.

He pointed out that from the perspective of the central bank's balance sheet, the currency and the deposit reserve are added to the base currency, but the central bank's liabilities are not all the base currency; therefore, the central bank does not mean that the central currency is reduced, Does not mean that the base currency increases.

China's central bank in the first quarter of 2021 monetary policy implementation report also said that China's central bank "contract" does not necessarily mean to tighten monetary policy, due to the first quarter, "schedules" by the seasonal and fiscal revenue and expenditure and other short-term factors, From the current data, the central bank balance sheet in April has been re-converted to "expansion table."

For the influencing factors of the base currency, Sheng Songcheng pointed out that the central bank's three major policies, only the open market operation, re-lending, and then discount the policy affect the base currency, the deposit reserve policy does not affect the base currency, but only affect the money multiplier.

For example, in 2015, China's central bank cut the size of the assets of the most obvious, the annual reduction of 2.04 trillion yuan, the same period the base currency by 1.77 trillion yuan. During the period, the broad money supply (M2) increased by 13.3% year-on-year due to the four reductions in the statutory deposit reserve ratio and the increase in the money multiplier.

In February and March this year, the size of central bank assets decreased by 279.8 billion yuan and 81.1 billion yuan, but the money multiplier rose to 5.29 times, M2 growth of 10.5%, but there are changes in the Spring Festival factors, there are seasonal changes.

"In January due to the impact of the Spring Festival, so before the Spring Festival is often a lot of money, and 2, March will be the currency return." Sheng Song Cheng said, "the central bank balance sheet there are government deposits, this is not all the central bank's initiative , And the base currency is the active debt of the central bank, so the scale does not mean a tightening.


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