Author(s)

Xin Guan

Corresponding Author

Xin Guan

Abstract

After the September 18th Incident, Japan began to conduct a comprehensive aggression and plunder in the northeast of China. In order to control the financial lifeblood the Japanese Kwantung Army planned and set up a puppet regime, Central Bank of Manchuria. The core issue of finance is currency and the basic problem of currency is monetary value. To maintain the value of Manchukuo banknotes, on June 11, 1932, the puppet government officially announced the implementation of the Pseudo- monetary Law, which had prescribed the issue reserve and related issues for the bank. However, with the outbreak of the war of aggression against China, the amount of paper money issued greatly increased, the issue reserve gradually reduced. After all, it was difficult to maintain the value of Manchukuo currency and the monetary credit went from bad to worse.

Keywords

Central Bank of Manchuria , Issue Reserve, Cash Reserve, Fiduciary Reserve.