Written by: Potato
Proofread by: April on Earth
As reported by Sina News on Dec 6, 2021, China’s central bank has announced that in order to support the real economy, it has decided to lower the reserve requirement ratio ( RRR) of financial institutions by 0.5 percentage on December 15, 2021. The central bank said it will continue to implement a prudent monetary policy. This is the second RRR cut by the central bank during the year, which released a total of about 1.2 trillion yuan (US$188 billion) of long-term funds.
The representatives of Everbright Bank, Minsheng Bank, and central bank all said the purpose of the RRR cut is to optimize the funding structure of financial institutions, enhance the capacity of financial services, and better support the real economy. RRR cut is a regular operation of monetary policy and the orientation of a stable and healthy monetary policy has not changed.
Such a lie the CCP said is always reflecting the opposite situation. Chinese companies are going bankrupt in large numbers, workers are losing their jobs, the cost of living is rising. China’s economy has been in serious stagflation which nothing can help it from collapsing. 1.2 trillion yuan could again go to the property bubble and stock market rather than support the real economy. RRR cut will not save communist China’s economy but just a ＂terminal lucidity＂.
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