RMB Internationalization Needs To Be Done Well

"P" recently, the Central Bank of Germany and China signed a memorandum of understanding to establish RMB clearing mechanism in Frankfurt, Germany. Next, we will select a clearing bank.

This paved the way for Frankfurt to become an offshore center of the renminbi, marking a new step in the internationalization of RMB.

< /p >

At present, the RMB has not yet been fully convertible, but the pace of RMB's "going out" is accelerating. P

From the Japanese yen to the Australian dollar to the New Zealand dollar, more and more Renminbi can be traded directly.

At present, the RMB has been able to carry out spot trading with 10 foreign currencies, such as the US dollar, euro, Japanese yen and Hong Kong dollar.

< /p >

< p > in recent years, RMB < a href= "//www.sjfzxm.com/news/index_c.asp" > internationalization < /a > obviously increased speed.

The RMB has entered "more than 200 countries and regions" through cross-border a href= "//www.sjfzxm.com/news/index_c.asp" > trade settlement > /a >. In 2013, the RMB has become the eighth largest payment currency and the second largest trade financing currency in the world.

In 2013, the RMB settlement business of cross-border trade totaled 4 trillion and 630 billion yuan, an increase of 57% over the same period last year.

At the same time, many offshore RMB markets such as China, Hongkong, London and Singapore developed vigorously. The people's Bank of China [micro-blog] also signed bilateral currency swap agreements with central banks or monetary authorities outside more than 20 countries and regions.

< /p >

< p > in the process of RMB going out, the market is playing a decisive role.

Taking China and Singapore as an example, the direct trading of China's new currency stems from strong market demand.

In 2013, China became the first largest trading partner and the largest export market of New Zealand for the first time.

In addition, the number of new students studying in China ranks first among foreign students in New Zealand for 10 consecutive years. China is also the second largest and fastest growing tourist source country in New Zealand.

< /p >

< p > in the current world economic recovery still has unstable and uncertain factors, and the international competition is more intense, our country is also facing the downward pressure of the economy.

The direct trade between RMB and more foreign currencies will facilitate international trade and expand our foreign trade space.

< /p >

< p > for the real economy, direct currency trading will facilitate investment and financing exchange.

Previously, domestic enterprises imported New Zealand products, they need to buy US dollars first and then pay in dollars.

In the future, enterprises can use Renminbi to exchange New Zealand currency directly, not only making trade more convenient, but also having to bear the dual risk of fluctuating exchange rate between us dollar and New Zealand dollar, and the extra paction cost generated by US dollar as "intermediary".

< /p >

< p > < a > href= > //www.sjfzxm.com/news/index_c.asp > RMB > /a > going out is out of the needs of the real economy and is the choice of the market. It is also an important step for China's exchange rate reform and strengthening the independence of the RMB exchange rate.

The direct exchange of RMB with more and more foreign currencies can get rid of over reliance on the US dollar and help to enhance the independence of RMB exchange rate.

At the same time, it is conducive to changing the structure of foreign exchange reserves, diversifying foreign exchange reserves and diversifying pactions.

< /p >

< p > but we should also see that the internationalization of RMB as the core path to enhance China's financial market's influence must not be haste, nor can it be accomplished overnight.

The internationalization of RMB needs to follow the principles of market and demand.

Whether the renminbi can be traded directly with a country's currency depends on the cooperation between the two countries and the will of the market.

At the same time, the speed of RMB going out and the acceptance of RMB in the international market are closely related to the process of China's reform and opening up, which means that RMB internationalization will be a gradual process.

< /p >

< p >, as Zhou Xiaochuan, governor of the central bank, said, there are still some "homework assignments" to be done in RMB internationalization.

At present, the most important step is to carry out "homework" and continue to push forward the market-oriented reform of exchange rate, so that the RMB exchange rate can reflect the market supply and demand more timely and effectively.

At the same time, we need to steadily push forward and gradually realize the convertibility of capital account and improve the risk management framework under capital account, so as to prevent the impact of short-term capital coming and going.

From the experience of opening up domestic capital account in developed countries, generally speaking, direct investment is prior to securities investment, and commercial credit precedes financial credit.

China's capital account opening path should also be based on the principle of "first long, short term, first direct and indirect", so as to monitor and manage cross-border capital.

< /p >