Principles of distribution: 1. Adhere to economic distribution.
To adhere to economic issuance means to issue RMB through the channel of bank credit according to the development of national economy and the actual needs of commodity circulation. This is the most basic principle of RMB issuance.
Corresponding to the principle of economic issuance is financial issuance, that is, according to financial revenue and expenditure.
Although the financial issue can play a compensating role, but it undermines the stability of the currency, is an irrational issue method.
So, must hold to economic issue principle.
2. Stick to the launch plan.
It means that the issuance of currency must be incorporated into the whole country’s planning system and handled according to the plan, so as to ensure the stability of currency value and price.
The head office of the People’s Bank of China shall put forward a currency issuance plan and submit it to The State Council for approval before implementation.
2. Adhere to centralization and unity.
Adhering to the principle of centralized unification means that the People’s Bank of China is the only currency issuing institution in China and centrally manages the currency issuing funds.
The People’s Bank of China (PBC) has the monopoly power to issue currency, regardless of banknotes or coins, whether main or minor coins.
In addition, the Ministry of Finance, other financial institutions, and any unit or individual have no right to issue currency or substitute currency.
