The currencies include regional currencies, national currencies, and foreign exchange currencies

The legal status of the Hong Kong dollar

The National People's Congress promulgated the According to Article 111 of the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China: "The Hong Kong dollar is the legal tender of the Hong Kong Special Administrative Region and continues to circulate. The right to issue Hong Kong dollars belongs to the government of the Hong Kong Special Administrative Region. The Hong Kong dollar Issuance must be 100% reserved. The issuance system and reserve system of Hong Kong dollars are prescribed by law. The government of the Hong Kong Special Administrative Region may authorize the designation if it is sure that the foundation for the issuance of Hong Kong dollars is sound and the issuance arrangements are consistent with the purpose of maintaining the stability of the Hong Kong dollar. Banks issue or continue to issue Hong Kong dollars according to legal authority. "Article 112 of the Law also stipulates: "The Hong Kong Special Administrative Region shall not implement foreign exchange control policies. The Hong Kong dollar shall continue to open its foreign exchange, gold, securities, futures and other markets. The Government of the Special Administrative Region guarantees the free flow and entry of funds. "Obviously, the Hong Kong dollar is the legal regional currency of the Hong Kong Special Administrative Region of the People's Republic of China. In the international market, it also has the function of international settlement and is the means of payment for international settlement. and assets. In the Hong Kong Special Administrative Region, the Hong Kong dollar is freely convertible and no foreign exchange control policy is implemented. However, the Hong Kong dollar is not expressed in a foreign currency. According to the provisions of Article 3 of the aforementioned "Foreign Control Regulations", it is obvious that the Hong Kong dollar is not a foreign currency, but a regional currency within China.

The legal status of the Taiwan dollar

Is the legal status of the Taiwan dollar the same as that of the Hong Kong dollar and the Australian dollar? The author believes that it is completely different now. According to the Constitution of the People's Republic of China: "Taiwan is part of the sacred territory of the People's Republic of China. Completing the great cause of reunifying the motherland is the sacred duty of all Chinese people, including Taiwan compatriots." China The People's Republic of China is the only legitimate government in China. This is not only true of the relevant provisions of domestic law, but also in terms of international law and international organizations such as the United Nations, the People's Republic of China is the only legitimate government of China. Our country's policy towards Taiwan is one country, two systems, and we strive to maximize our efforts to peacefully resolve the Taiwan issue.

According to Article 15 of the "Law of the People's Republic of China on the People's Bank of China": "The legal currency of the People's Republic of China is RMB." And based on the understanding that the People's Republic of China is the only legitimate government in China. The author believes that the current legal status of the Taiwan dollar has not yet been confirmed by the People's Republic of China. Although the Taiwan dollar has a settlement function internationally and is also a means of payment and asset for international settlement, the Taiwan dollar is not expressed in a foreign currency. According to the provisions of Article 2 of the "Foreign Administration Regulations", the author believes that it can be confirmed that the Taiwan dollar is not a foreign currency.

We can issue as much currency as we need for circulation. If there is more, it will expand, if there is less, it will shrink.

For example:

If one person has one yuan, no one consumes it and does not circulate it, the goods will be overstocked and cannot be sold. The money in circulation is 0 and the number of circulations is 0. , in that case, is it still necessary to issue currency? If there is only one dollar and 100 people consume it once, then one dollar can be used 100 times. The currency in circulation is one yuan. If it circulates 100 times, everyone has consumed 100 worth of goods. In this case, we issue 1 yuan banknotes. , through the circulation of banknotes, everyone consumes, the currency in circulation is one yuan, and the total value of the goods consumed by everyone through circulation is 100, that is, 1 (amount of currency issued) = 1 (currency in circulation), 100 (number of circulation) * 1 (currency in circulation) = 100 (total commodity prices), this is what the formula means.

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