China’s Central Bank Releases More Money! 💰
Hey there! Have you ever wondered how money flows in a country? Well, here’s some exciting news from China!
China’s central bank, called the People’s Bank of China, is making a big move. They are reducing something called the “reserve requirement ratio” by 0.5 percentage points. 🤔
But what does that mean? Let’s break it down! Imagine you have a piggy bank, and your parents tell you that you must always keep a certain amount of coins in it and not spend them. This is like the reserve requirement for banks. Banks are told to keep a certain amount of money saved up and not lend it out.
By lowering this requirement, the central bank is allowing regular banks to have more money to lend to people and businesses. This means more money can be used for building things, starting new projects, or buying stuff! 🚀
This change is expected to release about 1 trillion yuan into the economy. That’s around $138.9 billion! That’s a lot of zeros! 😮
Pan Gongsheng, the governor of the People’s Bank of China, announced this on Wednesday. The goal is to help the economy grow stronger and support businesses and people who need loans.
So, in simple terms, China is adding more money into its economy to help things run smoothly. Pretty cool, right? 🌟
Reference(s):
China to cut reserve requirement ratio by 0.5 percentage points
cgtn.com
