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What does it mean for the central bank to hand over profits of 1 trillion yuan?

author:Kikitan

The central bank suddenly released heavy news: this year, it will hand over more than 1 trillion yuan of balance profits to the central finance. The central bank's big move has suddenly aroused widespread heated discussion. The earning power of the central bank has also become a hot topic of discussion. It turns out that the central bank is so rich!

What does it mean for the central bank to hand over profits of 1 trillion yuan?

The central bank is a government department, not a commercial bank, but its ability to make money should not be underestimated. The money earned by the central bank is mainly investment income and interest income from foreign exchange reserves. The mainland's foreign exchange reserves are the highest in the world. Up to $3.2 trillion. The money earned through foreign exchange reserves is the money of the state treasury. Therefore, the central bank has to hand over a trillion yuan of profits. If you don't hand it in, won't you become the bank's own money to spend itself? So is this bank still the state? So, in essence, the money of the central bank is the money of the state, and the central bank is only responsible for managing foreign exchange reserves.

Our country is now rich, and foreign exchange reserves focus on a security. So, we don't invest in anything risky, and the mainland's foreign exchange reserves are mainly invested in the bond markets of the United States, the euro area, the United Kingdom and Japan. Especially the national debt. Since the mainland's foreign exchange reserves are large in size, the total amount of income will also rise. It's still very profitable.

What does it mean for the central bank to hand over profits of 1 trillion yuan?

So, why did the central bank suddenly hand over 1 trillion yuan of profits at this time? Rescue! We know that during this time, our shareholders are miserable. Because of the relationship between international current affairs and politics, the world now has no confidence in the market. Many countries, including European countries, have lowered their national economic growth expectations. It shows that everyone has little confidence in the future. This has caused stock markets around the world to fall.

At this time, the central bank has to do something. Confidence in the stock market must be revived, which is why the central bank gives money directly. This is a kind of support for the country's economy and stock market. We know that since the outbreak, the global economy has not been good. Last year, the mainland's GDP showed a downward trend in the quarterly gradient. That is, in the first quarter, GDP growth was the highest, then decreasing, and in the fourth quarter, GDP growth was the lowest. This shows that throughout the year last year, everyone did not have confidence in the market. This is shown in the GDP data. So what to do? Boost confidence! This year, the state will certainly vigorously stimulate the investment and consumption ends and reactivate the market. Therefore, this year's market environment will slowly improve. Moreover, our economic prospects for this year are still there, at least, the central bank's 1 trillion yuan has a place to play. Therefore, this year's state support for the real economy is not lacking at all. Our country still has enough confidence to cope with the current international complex situation and the possible inflation situation in the future.

What does it mean for the central bank to hand over profits of 1 trillion yuan?

Of course, some friends will worry that the 1 trillion yuan flowing into the market will not cause inflation? Don't worry at the moment. Because, the Chinese market is too big. 1 trillion is really not the scale that can trigger inflation. Therefore, this 1 trillion yuan is just right, which will play a very big role in upgrading the real economy, especially small and micro enterprises, but it will not change the inflation trend of the mainland. It doesn't "do bad things with good intentions." Besides, this 1 trillion yuan cannot be put on the market all at once. There must be a plan. Slowly inject into the market, in order to play a better effect. We now think that everything is expensive, but from the data point of view, objectively speaking, in fact, the inflation rate of our country is not high. If you compare yourself to countries with really high inflation rates, we're too healthy. This year's inflation target is set at 3%, indicating that the overall inflation rate on the mainland is not high. It can be said that it is completely controllable. This 1 trillion yuan of funds will not have any impact on mainland inflation. The profits handed over by the central bank to support the real economy are quick and accurate to benefit enterprises and the people, reflecting the importance that the state attaches to the market and people's livelihood. In addition to supporting the real economy and enterprises, the balance of foreign exchange reserves will also be used to supplement the gap in pension insurance funds. Now, this gap, our foreign exchange reserves can be filled, very confident. Therefore, whether it is from the perspective of economic recovery or the timely payment of pensions, we must have confidence in the economy of our country.

What does it mean for the central bank to hand over profits of 1 trillion yuan?

And now, although the international situation is changing, especially the price of crude oil, people are panicking. No one knows what will happen in the future. Therefore, everyone in the world is a little panicked. But, I think we need to see confidence in the future behind the panic. Let's take the United States, for example, the United States has confidence in the future. Why? The United States is now taking advantage of the sanctions of Russian companies, the stock price has fallen sharply, and it is frantically bottoming out. If it does not have confidence in the future, can it bottom out? Bottoming out is betting that the stock prices of these Russian companies will bottom out and rebound in the future. So, sometimes the superficial fight is superficial. In fact, privately, your opponents want you to be better than you. Because you are good, he can also make money. Everyone is rational. I believe that no matter how chaotic it is now, this chaos will soon subside. Because, everyone still wants a better future.

So, this year, we have to have confidence in the economic trend of our own country. I believe that in four quarters, our GDP will surely have a recovery performance. Instead of the gradient that decreased last year. This year, the state will consciously stimulate the investment side and the consumption side. Therefore, this year's small partners who want to make a difference, see if it is suitable for this time to act. Of course, investment is risky and you need to act cautiously. The central bank's 1 trillion profits show that our country still has the money to cope with today's situation. This is also good news for our little people!