750 billion! Central bank once again "sluice gate"! Small and micro enterprises or welcome major ben

On October 7, the People's Bank of China announced that from October 15, 2018, the reserve ratio for RMB deposits of large commercial banks, joint-stock commercial banks, urban commercial banks, non-county rural commercial banks and foreign banks would be reduced by 1 percentage point, and that the MLF due on that day would not be renewed.
Some of the funds released by the reduction will be used to repay about 450 billion yuan of medium-term loan facility (MLF) due on October 15, which will not be renewed on that day. In addition to this part, RR can release additional funds of about 750 billion yuan.
Yangma released 750 billion yuan to help small and micro enterprises develop
As we all know, one of the problems that small and medium-sized textile enterprises have been facing is the difficulty of financing. One of the important reasons for the reduction of the central bank's approval is to guide finance and serve small and medium-sized enterprises with incremental interests. The financing difficulties of small and micro enterprises may be solved.
Wujiang Zhi Kun textile's single general said: “ this time again is definitely good news for us. Our company's own factories are relatively small and there are few machines in the factories. It is very difficult to make textile without machines these days. We have always wanted to continue expanding the scale of our factories. However, due to the shortage of funds, financing is too difficult and delayed. This release of funds is mainly aimed at small and micro enterprises. The key point is to solve my problem. It is difficult and expensive for enterprises like you to raise funds. I think it will be helpful for us to raise funds.

Many people in the market have doubts about whether the central bank will lower the RMB exchange rate.
Regarding the impact of the reduction on the RMB exchange rate, Lian Ping pointed out that the moderate domestic liquidity scale of net investment after the replacement of MLF by the reduction will make up for the corresponding liquidity gap, and will not cause the interest rate to fall significantly, thus will not increase the pressure of RMB devaluation. Mingming said that this reduction is still a substantially neutral monetary policy operation, and the central bank does not exclude the use of other necessary measures to stabilize market expectations and maintain the basic stability of the exchange rate.

For some time to come, monetary policy may remain robust and maintain a reasonable abundance of macro liquidity rather than excessive irrigation. Lian Ping said that the focus of monetary policy will be to guide and adjust the flow of liquidity and support small, private and innovative enterprises in order to improve policy effectiveness. In the future, there is still room for further reverse adjustment of monetary policy to meet the changing situation and the needs of the real economy and financial markets.
For textile foreign trade enterprises, exchange rate fluctuations have a great impact on enterprises. A textile trader in Shengze area said to Xiaobian, & ldquo; This year, the form of foreign trade is not clear, international trade wars are also occurring, and foreign trade market is still acceptable. It can only be said that there are good enterprises and bad enterprises. For foreign trade, foreign exchange settlement is also a very important profit factor besides the order. This year, the RMB exchange rate is like a roller coaster. If we do not seize the right time to settle the exchange rate, we may lose a sum in vain. But if we do, we will have a good profit. The exchange rate remains stable, and the rise and fall will have an impact on our enterprises. ”

Editor's Note: On the last day of the Golden Week of October National Day, the Central Bank announced that it would lower its benchmark and release 750 billion incremental funds. This is good news for small and micro textile enterprises. At present, the financing environment of the whole market is still quite severe. The interest rate cut by the central bank can be said to be a sweet rain. Once the interest rate cut is implemented, enterprise loans will be more convenient, which is more conducive to the expansion of small and micro enterprises and the reduction of production costs.