| The central bank introduced a new launched operational tool in 2002, which attracted considerable academic attention and appeared the voices of affirmation and hesitation. With its appearance, there were many factors included into the consideration of the central bank of China. These factors involved the practical points, the institutional reasons, constraints of exchange settlement and sales system as well as the immature market economy. Overall, as the background of no better tool for open market, the emergence and use of central bank bills were the actual optional at this stage, which would improve the central bank to implement the hedging policy currently.The central bank bills has its both positive and negative aspects as any other new-born things, However, it is fallacious to deny its usefulness with its existed negative side in the open market business operations. The central bank bill has played a positive role on maintaining the consistency on money supply and social real demand, stabilizing money market rates. The encountered problems could be solved by innovation and development, therefore, the role of the central bank should be examined from the all-round and deep multi-angle. The central bank bills played an active role on open market; meanwhile, its impact on other operational tools should be reduced to the minimum level through other policy instruments.Firstly, the thesis introduced the concept background and purpose of central bank bills. Secondly, the thesis discussed the status of central bank notes and compared the following aspects, such as the other operations on the open market, term structure, hedging and regulatory principles. The study analyzed the central bank bills' impact on China's macroeconomic environment and its contribution to social harmony and stability, the influence to the other instruments as well as its limitations. In the end, the thesis made a perspective on the prospects for central bank bills and then drew conclusions. |
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