China And South Korea Currency Direct Trading To Lift The Internationalization Of RMB And Another One

P, July 3rd, Chinese President Xi Jinping launched a two day visit to South Korea and held talks with South Korean President Park Geun hye.

On the 2 day, the ROK presidential office announced that the ROK / RMB direct trading agreement will be signed at the summit meeting between China and South Korea this week.

< /p >

< p > < strong > < a > href= > http:// > www.sjfzxm.com/news/index_c.asp > Korea > /a > all walks of life positive attitude < /strong > /p >

In the past 22 years since the establishment of diplomatic relations between China and South Korea, the relations between the two countries have been developing rapidly. The two sides have established strategic cooperative partnership and become important partners in many fields. P

Last year, trade between China and South Korea reached US $274 billion 200 million.

< /p >

< p > according to the press, Korean media, financial research institutions, business circles and other industries have a positive attitude towards direct currency pactions between China and Korea.

< /p >

"P", "from Korean perspective, launching direct currency pactions between China and South Korea is one of the measures that will help to achieve the free convertibility of the won in overseas pactions, which helps to reduce dependence on the US dollar."

A Korean employee who worked in China for many years, told reporters yesterday.

< /p >

< p > "we should invigorate the two countries' monetary settlement system through the realization of the direct trade between the Korean won and the renminbi".

According to the commentary of the Korean Institute of financial operations, it should provide policy support for the construction of the Korean won and RMB direct trading market, play the role of "open source drainage" and finally achieve direct currency pactions between the two countries.

< /p >

< p > the Institute of financial operations also said that building cooperation channels and cooperation networks among the two policy departments is a cooperative topic in the financial field of the two countries.

From the perspective of the size and volume of trade between China and South Korea, the two countries should establish a foreign exchange market cooperation system to seek the internationalization of their currencies.

< /p >

< p > Korean media commented that China and South Korea have never been so dependent on each other economically or politically.

Bilateral trade has surpassed the total volume of trade between Korea, the United States, South Korea and Japan, and South Korea has surpassed Japan to become China's largest source of imports.

< /p >

< p > < strong > boost a href= "http:// www.sjfzxm.com/news/index_c.asp" > RMB < /a > internationalization process < /strong > /p >

< p > according to the statistics of Korea central a href= "http:// www.sjfzxm.com/news/index_c.asp" > Bank < /a >, as of the end of 5 this year, the balance of RMB deposits in the Korean banking system reached about 70 billion yuan.

This also means that after the US dollar, the RMB has become the second largest foreign currency deposit in Korea.

< /p >

< p > in April this year, the Korean government put forward the intention of building RMB offshore trading center, and the market demand for RMB settlement, liquidation, credit and capital pactions also gradually increased.

Previously, the Seoul branch of ICBC (601398, stock bar) launched a large amount of negotiable certificates of deposit in South Korea, with a total issuance of about 1 billion 600 million yuan.

< /p >

< p > "this can reduce the paction and settlement costs of both sides in trade and investment and reduce exchange rate risk."

A senior foreign investment bank told reporters yesterday that it also boosted the internationalization of the RMB and won.

< /p >

According to the rough statistics of reporters, China has signed currency swap agreements with Australia, Japan, Thailand, Malaysia, the United Arab Emirates, Turkey and many other economies, and has also promoted offshore RMB trading centers in Hongkong, London and Singapore, and other markets in P, China.

< /p >

< p > Standard Chartered Bank Research Department said that according to the current statistics, Hongkong, China is still the largest offshore RMB market, with London ranked second, and Singapore, Taipei, New York and so on.

< /p >

"P >" at present, the European market, the use of RMB trade settlement, and the new cross-border RMB liquidity management tools to move faster.

But with more and more Asian countries participating in the currency swap and trading agreement with the Central Bank of China, it is expected that the liquidity of RMB will further improve in the Asian market, and there will be more RMB investment instruments to be launched in the future.

The above large foreign investment bank said.

< /p >