Realizing The Integration Of Foreign Currency And Foreign Currency To Help RMB Internationalization

Yang Yanqing said yesterday at the "2014 Shanghai Shanghai Financial Summit Forum" that the internationalization of RMB is a practical issue. Only by realizing the integration of foreign currency and foreign currencies, can the RMB internationalization develop faster in the simultaneous development of offshore and offshore two markets. "At present, the offshore market in Hongkong has a preemptive advantage over the onshore market. We should focus more on the development of Shanghai's onshore market, rather than the offshore market in Hongkong, so as to achieve the synchronization between them."

The latest SWIFT data show that RMB payment is currently ranked seventh in the world, but only 1.41%. It can be seen that the international status of RMB is still quite low.

Yang Yanqing said that the concept of "de dollarization" in the current market is actually a false proposition. She explained that in the 2008 financial crisis, the central bank played a key role in the extremely lack of liquidity. The US dollar strengthened its position. At the same time, the six major central banks of the world, including the Federal Reserve last October, reached a long-term multilateral currency swap agreement, which was also intended to strengthen the status of the US dollar.

In contrast, the Central Bank of China and the world's multinational currency swap, in itself, has more significance in establishing a monetary network. Internationalization More hard work is needed. Yang Yanqing said that changes in the US strategy have made the rise of the renminbi face opportunities, but also faced challenges such as the slow progress of cooperation between the Central Bank of China and the Federal Reserve.

"If the renminbi can play a greater role in the context of the Fed's interest rate increase through its own strategic arrangements, accelerating the reform in China at the same time taking advantage of international opportunities is more conducive to the realization of the dream of RMB internationalization as soon as possible. It is expected that China will be the fourth largest in the world by 2020.

At this forum, many participants thought that the opening up of China's capital market is an important prerequisite for whether the RMB will eventually become a reserve currency.

" RMB The level of internationalization itself is still very limited in terms of trade, and the most important thing in the opening of capital account is direct investment across the border. Shanghai-Hongkong Stock Connect It has become a very typical event of RMB cross-border direct investment, and its significance is particularly important. Chen Shuang, executive director of China Everbright Ltd, said yesterday that proper opening under quota management is China's choice at this stage, which is also a way for the future.

At the same time, Professor Rui Meng, a professor of Finance and accounting at CEIBS, gave four prerequisites for the opening of capital account: first, the stability of the macro economy and the world financial order; two, the liberalization of the financial market; three, the effective supervision and supervision of the financial market, and finally the flexible pricing mechanism of the exchange rate. "If we examine these four necessary conditions, China will not meet the requirements of the latter three. At present, China does not yet have the conditions to fully open capital account."