Ming Zuo

Chapter 1270 Bank
"Currently, the country's gold reserves total 830 tons. After calculation, it can fully undertake the task of currency reserves. Using this to issue a new currency is enough to achieve stability and ensure market circulation."

Zuo Xiang informed everyone, and it was absolutely good news.

The issue of new currency mainly exists in two areas.

One is printing technology.

It must be ensured that the new currency has an insurmountable threshold.In this way, it can be guaranteed that there will be no counterfeiting, and the order of currency circulation can rest easy.

The other is gold reserves.

Now that it is determined that the currency will be linked to gold, sufficient gold reserves can ensure that the currency will not depreciate.

As for the payment of currency, it does not exist.

Although Zuo Menggeng is not a financial expert, he also knows that there is no direct payment relationship between currency and gold in later generations.

The real currency exchange system with gold only existed for a short period of time in history, and soon collapsed.

This is because the use of precious metals as a currency exchange tool will fluctuate greatly with the increase and decrease of the output of precious metals, which is unstable.

Therefore, it is more in line with economic development to remove the payment relationship between currency and gold, realize an independent system, and change it into a credit currency.

Since it is a credit currency, the strength of the country is more important.

Does Xia Guo have this strength?

Whether it was Zuo Menggeng, the center, or even all the officials from top to bottom, they all had full confidence in this.

Without being in the Xia Kingdom system, one would not realize how powerful the Xia Kingdom is.

The monetary system supported by this is naturally more scientific and more beneficial to the country.

"Through studying with the Dutch, we have fully understood the financial operation rules on Europa. It is agreed that the construction of a new currency and financial system must be inseparable from the bank. We need to establish our own bank to manage the currency. and the financial system."

Hou Xun's suggestion is actually the unanimous opinion of the center.

The manufacture and issuance of currency is related to national security and the vital interests of the people.A careless move may cause great harm to the country.

Therefore, there must be a professional and safe system to engage in related work.

The rise of the bank in Europa has made everyone aware of its merits.

Zuo Menggeng also agrees with establishing a bank and using it to issue currency and control the circulation of currency.

After all, this is how the financial system of later generations works.

But Zuo Menggeng found that everyone's cognition still has huge flaws.

This is not because of the lack of ability of the central officials, but because of the age gap.

"My suggestion is that there are two types of banks. One is the central bank, which has only two purposes and tasks. It is the printing and issuance of currency, and it is responsible for supervision."

What Zuo Menggeng said caused everyone to think.

Obviously, the central bank he mentioned is very different from what everyone has learned.

Specifically, Europa's banks are actually more like companies in the market.

Although they also mint and issue currency, the main function of this kind of bank is actually to absorb deposits from the market and make loans to potential industries.Use the interest rate difference to realize the bank's profit.

Zuo Menggeng made a detailed division of the bank's functions.

Although this central bank does not have the functions of taking deposits and issuing loans, it has a monopoly on the minting and issuance of currency, and it also has the power to supervise other banks.

In other words, this central bank is more like a national authority, which is responsible for the control of the financial industry.

Li Banghua is very clever, and he figured out many joints at once.

"Your Highness means that banks that accept deposits, issue loans, and have other commercial functions can be opened to private capital or even foreign capital. Only the three functions of minting currency, issuing currency, and supervising finance can only be attributed to the central bank ?”

Whoever said that people in this era are ignorant.

Zuo Menggeng appreciated it.

"Li Xiang has a keen eye and sees every detail. This is exactly what this king means. You may wish to discuss whether this arrangement is more reasonable?"

While everyone was thinking, Huang Daozhou said something.

"During exchanges with financial scholars in the Netherlands, I learned an unbelievable thing. The Netherlands is experiencing a terrible financial disaster. Since 30 years ago, there has been a trend in the Netherlands. A kind of The unremarkable flower has become the vane that everyone is chasing. Everyone rushes to buy this kind of flower, and then sell it at a high price. After going around like this, the price of the flower has risen to an unbelievable level, which is really shocking. Few people have made enormous fortunes through this trade."

Jiang Wei didn't know why.

"Since this kind of behavior can make money, but I don't know where the harm is?"

Zodiac Zhou clearly said something about another country, but he still felt terror in his expression.

"Try to think about it, Jiang Xiang. No matter how noble a mere flower is, its value has a limit. But through this kind of roasting, the price of ordinary flowers has risen steadily. The people who participated in it did not think that they were buying flowers. For personal use. I just saw the rise in the price of flowers, and the benefits contained in it. Many people didn’t even keep them in their hands for a day after buying the flowers. People get rich. But in the end, the price of flowers has climbed to a height that people can't afford, and they can no longer resell, and this kind of circulation collapses in an instant. What are the consequences?"

Everyone listened carefully, except for Zuo Menggeng, everyone was terrified.Before he knew it, cold sweat soaked his clothes.

"Can't the people of the Netherlands see through the crisis?"

Huang Daozhou shook his head and sighed.

"Under the huge profits, everyone is crazy about it. Even if there are so few calm people, how can they turn the situation around? This time, several Dutch people who came to China to help us build the financial system did not follow the trend, resulting in There is no way to gain a foothold in the Netherlands."

Facing the vivid facts, everyone in the center was a little terrified.

Although since Bingguo, everyone has realized the importance of wealth to the country.But to the extent of the Netherlands, wealth has turned into a scourge.

Will this scene happen again in the future Xia Kingdom?

Qu Shi suddenly thought of something, and looked at Zuo Menggeng in admiration.

"His Royal Highness separated the functions of the bank and set up the central bank to avoid this lesson. I don't know if it is correct?"

Among the suddenly enlightened expressions of everyone, Zuo Menggeng did not see any relief.

"I can see the lessons learned from the past and think of ways to avoid it. But who can tell what crisis will happen in the future?"

People of later generations have thought of various methods and adopted various measures in the financial field.But in the end, it's not that crises follow one after another, each time becoming more harmful.

Zuo Menggeng thought to himself that with his knowledge and ability, it might be difficult to avoid all kinds of financial disasters.

(End of this chapter)