A comprehensive analysis of the central bank's monetary policy tools to understand the super savings system of the monetary system! Brothers who want to understand the central bank's monetary policy Remember the core formula: △ Excess reserve requirement=△ Foreign exchange reserves+△ Debt to other deposit holding companies - △ Currency issuance - △ Statutory reserve requirement - △ Government deposits. Around it, the central bank's tool combination directly controls liquidity! Traditional+innovative, dual track control of liquidity Traditional OMO: Reverse repurchase of daily investment liquidity, adjustment of short-term interest rates, positive repurchase of funds (less used after 14 years), the foundation within the foundation. Innovative tools: SLF (Emergency Blood Transfusion), MLF (Anchored Medium Term Interest Rate), TMLF/PSL, etc., accurately covering different periods and entities, targeting the "drip irrigation" market. Policy logic in capital flow Foreign exchange deposits, central bank releases (public+non-public), government deposit linkage, national treasury fixed deposits locking fiscal funds, stabilizing interbank liquidity... Understanding this system, the central bank's regulation password of "stabilizing interest rates and adjusting liquidity", allows brothers to understand without confusion!