Foreign Central Banks Rush To Do Renminbi Business: Reserve Currencies Are Irresistible

In August 26th, another RMB clearing bank was officially unveiled in Frankfurt, the European Financial City, and became a new milestone in the internationalization of RMB. According to a survey by Deutsche Bank, 80% of the surveyed enterprises look forward to using RMB to settle accounts directly if possible, so as to improve the settlement speed and avoid operating risks.

Before, many foreign central banks have been competing for Renminbi business. In July 3rd, the Bank of Korea and China signed a memorandum of cooperation on RMB clearing arrangements. In June 29th, the Bank of France and Luxemburg central bank finalized the RMB clearing arrangement with the Chinese side. In July 28th, the RMB clearing system jointly developed by the Bank of China (2.64, 0.01, 0.38%) and the Australian Securities Exchange (ASX) was formally put into operation, and the renminbi became the first foreign currency to be incorporated into the Australian local clearing system.

Insiders pointed out that no matter what kind of currency it is, its demand is undoubtedly the embodiment of the "hard index" of the currency position. According to the latest statistics of SWIFT, the RMB has become the second most commonly used international trade financing currency and the seventh largest payment currency in the world. By the first half of 2014, the total amount of RMB payment has reached 1.55% of the total global payment. Statistics show that as of now, more than 50 central banks in the world are actively preparing to include Renminbi in foreign exchange reserves.

It can be predicted that the popularity of RMB clearing will not only facilitate the outbound travel and business of Chinese people, but also the gospel of China's economy around the world.

In fact, the central bank has been "touted" by central banks, based on confidence in China's economy. "RMB is favored and needed, reflecting China's current economic strength and development momentum. In fact, not only the renminbi, but also the status of any currency comes from the economic and financial strength of the country. In the past, the US dollar became the world currency. It depended on the unique economic, financial and technological strength of the United States after World War II. And this is exactly the fundamental reason why the renminbi is currently being pursued. Xie Taifeng, Dean of the school of finance, Capital University of Economics and Business, told our reporter.

one kind currency There are many reasons for being optimistic. "From the point of view of trade, China's foreign trade volume has long been the top in the world and its products are sold all over the world. From the financial perspective, there is a general expectation that the use of RMB will increase in international financial spanactions in the future, which has raised the demand for circulation and payment of RMB." Liu Cheng, associate professor of international economics and trade at Nankai University, said.

Experts pointed out that the renminbi is "good" or "hot", not only objective reasons, but also subjective reasons. Behind the big strides of the renminbi, there is a lot of fruitful work done by the Chinese government in recent years in adapting to the economic development situation and coordinating the two major domestic and international situations.

Since 1973 Establish Since the collapse of the Bretton Woods system of world monetary structure after World War II, the world reserve currency has been developing in a pluralistic way. IMF statistics show that although the US dollar is still the world's largest reserve currency, its share of global foreign exchange reserves has dropped from 72.7% in 2001 to 60% today.

Analysts pointed out that in the long run, the internationalization of RMB and the gradual development of reserve currency are irresistible. On the one hand, the trend of China's economic fundamentals has been unchanged for a long time. Positive factors such as mode of spanfer, structural adjustment, and the release of dividend reform have injected lasting momentum into improving the quality of economic development. On the other hand, the value of the renminbi has been more stable than other major currencies in the world, and it can be said that there has been a steady increase in the value of RMB, which provides a strong power for the central banks with strong "value preservation and increasing demand" to reserve Renminbi. Xie Taifeng said.

　　 expert It is believed that compared with developed countries such as the United States, China's economy needs to solve the basic problems of low per capita GDP, low capacity overcapacity and insufficient innovation capability. The RMB should replace the US dollar and there is still a long way to go.

Looking forward to the future, the trend of RMB internationalization is like rolling wheels. Although the progress is slow, the trend is irreversible. Experts predict that with the continuous deepening of reform in all fields of China's society, the Chinese economy will release even more amazing vitality under the catalysis of the reform dividend.