Zhu Huichun: The Internationalization Of RMB Needs To Be Pushed Forward Step By Step.

Jukka Felman, global head of the central bank and the sovereign wealth fund, said that 40 central banks were prepared to use the renminbi as a reserve currency, which enabled the renminbi to have a reserve currency before full liberalization. Although the IMF has no foreign currency reserves in the form of Renminbi, data show that the proportion of other currencies in emerging market countries increased by nearly 400% compared with 2003, while the US dollar's share in global foreign exchange reserves dropped from 55% in 2000 to 33% in 2013. This shows that many countries are gradually reducing their dependence on the US dollar. We see the problems in the international monetary system and look forward to another option, and RMB is one of the options for international settlement and reserve currency. Therefore, it is also expected that more and more central banks are adding renminbi to reserves and investment portfolios. < /p >
Internationalization of RMB P is not only China's needs, but also the needs of the international community. The direct transaction of RMB against New Zealand dollar in March 18th this year is an example of the success of both sides. Since 2008, trade between China and New Zealand has increased rapidly at an annual rate of 18.6%. New Zealand dairy products and meat products exported to China even increased by more than 500%. Such alarming growth and strong demand for trade make it urgent for business people in both countries to achieve direct currency exchange and reduce exchange costs and risks. This is the international market basis for RMB internationalization. At present, China has become the world's second largest economy, the world's first export power, and the world's largest trade in goods. Relying on its huge economic volume and good economic prospects, the yuan will increasingly become the first choice for the world's countries and regions to diversify their reserves and diversify their risks. < /p >
< p > however, although the internationalization of RMB is gratifying, it is still a young plant. At the end of 2013, the offshore RMB index of the Bank of China was 0.91%, which means that in the international financial market activities such as offshore deposit and loan, the share of RMB accounted for 0.91% of all a href= "//www.sjfzxm.com/news/index_cj.asp" > currencies < /a >. According to the bank for International Settlements, the volume of renminbi transactions in the global foreign exchange market in 2013 accounted for 2.2%. This shows that the yuan still has no say in global commodities. Wang Dan, deputy inspector of the two division of the monetary policy of the people's Bank of China, said that the proportion of Renminbi denominated accounts was relatively low. In 2013, the proportion of RMB in goods trade had exceeded 10%, reaching 11.7%, but half of those 11.7% were not denominated in Renminbi. < /p >
< p > in the final analysis, < a href= "//www.sjfzxm.com/news/index_cj.asp" > RMB > /a > internationalization is the process of RMB's "a" href= > //www.sjfzxm.com/news/index_cj.asp ">" /a "and" marketization "of the international community. Whether it will succeed or not will ultimately depend on the choice of the international market, and it depends on the acceptance of RMB by various countries in the world. And how to choose the international market requires China to do its homework first. Wu Xiaoling, deputy director of the finance and Economic Committee of the NPC, said that RMB internationalization is the result of China's reform and economic development. Apart from the marketization of interest rates and exchange rates, what is the most important issue in domestic "homework"? What is the ability to do with the renminbi? How many people are willing to accept it? How wide and deep is it to attract investors? That is to say, China needs more investment opportunities for holders of RMB. < /p >
< p > so, how far can the RMB go internationally, and it depends on the "report card" of domestic financial reform. The breadth and depth of RMB investment channels are closely related to the steady growth of China's economy. Pace does not depend on speed but on stability. The internationalization of the RMB needs to meet certain conditions, such as the RMB exchange rate can fluctuate freely, the multi-level capital market is established, the financial system reform is more perfect, and the financial regulatory system is more internationalized. This will take a long process, and we need to accumulate experience and advance in a steady and unstoppable way. Finally, the popularity of RMB will match the importance of China's economy. < /p >