Analysis on the balance sheet of the central bank in January: significantly expand the balance sheet, improve liquidity and increase structural support for the real economy

Abstract: the expansion of the central bank's statement in January basically reflects the central bank's support for the real economy in response to the downward pressure on the economy. The central bank provides liquidity for the market by increasing the creditor's rights of other deposit companies and increasing the acquisition of foreign exchange assets. The liquidity in the narrow and broad sense has improved, and the currency issuance has increased, reaching a record high. However, the decrease of deposits of other deposit companies has offset it, resulting in a relatively limited increase in the base currency and a rise in the currency multiplier again. From the balance sheet of financial institutions of other deposit oriented companies, the support for non-financial enterprises and residential sectors is particularly significant. It shows that the central bank has strengthened its structural support for the real sector in response to the downward pressure on the economy.