First of all, the People's Bank of China has the right to issue RMB.

The People's Bank of China, as the central bank, has the right to issue its own currency, also known as the "issuing bank". The specific issuance of RMB shall be handled by the issuing fund depository established by the People's Bank of China. The issuance procedure of RMB is roughly divided into four steps:

(1) Propose the RMB issuance plan and determine the annual money supply. The head office of the People's Bank of China puts forward the plan of currency issuance and withdrawal every year according to the national economic and social development plan, and organizes its implementation after being approved by the State Council. Including the design, printing and storage of paper money.

(2) the State Council approved the money supply plan approved by the People's Bank of China.

(3) Appropriating the issuance funds. The issuing fund is the currency to be issued which is kept by the central bank for the country. It is a reserve fund issued by money and does not have the nature of money. It shall be kept by the people's banks at all levels that set up the issuing bank and managed by the head office. The right to use the issuing fund belongs to the general library. 4) Daily cash receipts and payments in ordinary banks. The currency issuance of RMB is mainly realized through the cash receipt and payment business activities of commercial banks. After the commercial bank transfers the issuance funds from the issuing bank of the People's Bank of China to the commercial bank, it pays all units and individuals from the commercial bank through the cash register, and RMB banknotes enter the market. This is called "cash delivery". At the same time, commercial banks have to recover a certain amount of cash from the market every day. When the inventory currency of the business warehouse exceeds the prescribed limit, the excess shall be sent to the issuing bank for safekeeping. This is called "cash return". The process from the issuing bank to the operating bank is called "outbound", that is, currency issuance; The process of returning money from the business warehouse to the issuing warehouse is called "warehousing", that is, returning money.

Currency issuance has two meanings: first, it refers to the flow of money from the issuing bank of the central bank to the society through the business banks of commercial banks; Second, the amount of money flowing out of the central bank is greater than the amount returned from circulation.