Currency issue system

Currency issue system

The currency issue system is a country's relevant provisions on currency issuance of the country, which is generally formulated by the highest authority of the law, including the issuing institution, issuance limit, guarantee system and approval procedures, etc. The currency issue system has gone through metal standard system, convertible gold bank note issuing system and non convertible paper money system. The current currency issuing system actually refers to the issuing system of dishonoured credit currency.

The right to issue currency in China is concentrated in the people's Bank of China, with a high degree of centralized management and adherence to the principle of economic issuance. Except for the people's Bank of China, no region, unit or individual is allowed to issue any currency or currency in disguise, and has no right to use the national currency issuance fund. RMB is issued through the national bank credit program.

The content of currency issuing system varies with the national conditions of different countries, and the core is the difference in the principle of setting reserve fund for issuance. There are generally two types of preparation for issuance. One is cash reserves, including gold and silver bars with full monetary value, gold and silver coins and foreign exchange balances that can be directly used for foreign currency settlement. The other is guarantee preparation (also known as credit guarantee), that is, government bonds, short-term treasury bonds, short-term commercial paper and other assets with high liquidity as the issuance guarantee.