When the PBoC sells dollars from its reserves to support the exchange rate, the central bank balancesheet shrinks and China's money supply contracts.
当中国央行抛售其储备的美元以支撑人民币汇率时，央行的资产负债表缩水，中国的货币供应量也出现收缩。
2
Then we use the central bank's simplified balancesheet to explain the intrinsic function mechanism between foreign exchange reserve and the base money.
接着我们使用中央银行的简化资产负债表来解释外汇储备与基础货币之间的内在运行机制。
3
The foreign currency monetary items shall be translated at the spot exchange rate on the balancesheet date.