Report: RMB Or Dual Reserve Currency With Us Dollar

"P" recently, the international financial and regulatory center (CIFR) issued a report on RMB internationalization in Sydney. It believes that RMB will become one of the important international reserve currencies in ten years, and will have a significant impact on the liquidity, stability of the international financial market and even the whole international monetary system.

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< p > Chinese government securities priced in renminbi may become the main alternative "safe assets" of US Treasury bonds.

The future dual reserve currency is expected to play a stabilizing role in the global market. "

The above report points out.

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< p > "double < a href=" //www.sjfzxm.com/news/index_c.asp > reserve currency < /a > means a href= "//www.sjfzxm.com/news/index_c.asp" > US dollar < /a > and RMB as the main reserve currency of the future international monetary system, but the prevailing international monetary system observed that the future international reserve currency will form an international monetary system dominated by us dollar, euro and RMB.

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In 2012, the P World Gold Council put forward the view that in the reserve assets, the share of the major currencies in the world will be 65% in the US dollar and euro, and 13% in the renminbi.

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P's support for this report's optimistic view of the renminbi is that RMB's position in Southeast Asian currencies has been increasing.

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P > "P >" two scholars (Subramanian and Kessler) showed that during the period from July 2010 to July 2013 and July 2005 to July 2008, the rhythm of 10 countries in Southeast Asia to a href= "//www.sjfzxm.com/news/index_c.asp" > RMB < /a > was obviously faster, and 7 of the 10 countries or regions were even more tight than the dollar. When the RMB appreciation was 1%, the 7 exchange rate in Southeast Asia was up 0.5%, but if the dollar rose 1%, the above 7 exchange rate was only 0.3% in the upward range of the exchange rate. "

The report points out.

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"P >, but the report also adds that this can not be used as a basis for the formation of the RMB area in Asia." apart from trade diversification and the currency exchange agreement signed between China and 11 countries outside the region, it is also crucial for the Central Bank of China [micro-blog] to make preparations for "last rescuers".

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The internationalization of a country's currency is closely related to the reform of the domestic financial system. The study of RMB internationalization is based on the opening of domestic capital account and the continuous promotion of financial marketization and the improvement of capital market system. P

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Under this base period, the report thinks that China's stock market is expected to become the world's largest stock market in ten years. The total market value is expected to reach about US $30 trillion in 2025 or 25% of the global market value. By comparison, the total value of the US stock market in ten years is expected to reach US $22 trillion or the 18% of the global market value of P.

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At the same time, the scale of China's bond market will reach second in the world. In 2025, the scale of RMB bonds will be as high as 20 trillion and 400 billion US dollars, which will be the same as that of Europe, which is only 37 trillion and 900 billion US dollars after P.

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< p > "the stock and bond market in the mainland of China will become the benchmark of global and emerging markets, which will have a great impact on global asset allocation and related investments."

The authors estimate that the total investment portfolio in China will increase to $5 trillion and 900 billion from the current US $222 billion as of 2025.

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