RMB Settlement Or Internationalization Of RMB

(P) international experience also shows that currency internationalization can only mean that the local currency acts as an international settlement currency and a marked currency, so the internationalization of RMB is not necessarily linked to the reform of the international monetary system immediately. Weighing the pros and cons of RMB internationalization, in line with the principle of "ease first and then harder," at this stage, we should make clear the goal of promoting RMB cross-border settlement, supplemented by stable and controllable domestic reform and financial market development. < /p >
< p > the study of RMB internationalization is a hot topic in academic circles at home and abroad in recent years. From the perspective of literature, history and reality, the paper concludes that the formulation of RMB internationalization reflects an ideological shock, and that it is imperative to push forward the RMB exchange of cross-border transactions. < /p >
< p > first, the internationalization of RMB reflects more the impact of the rapid rise of China. However, historical experience shows that currency internationalization is a long process and does not necessarily relate to the reform of the international monetary system. Secondly, a multi polar international monetary system that fits the multipolar world does not necessarily solve the internal dilemma of the international monetary system. The direct motive force of currency internationalization should be domestic demand rather than the international situation. Finally, from the cost benefit analysis of RMB internationalization, we can find that it is a pragmatic policy to push forward the RMB settlement of cross-border settlement. < /p >
The internationalization of RMB P is the function of RMB to exercise money abroad. This is a process of gradually expanding the scale of cross border use of RMB. How do we do this? The central bank has a road map of RMB internationalization. According to my understanding, the roadmap can be roughly divided into the following stages: < /p >
< p > the first step is to make RMB flow out of the country through the settlement of imports. If the non residents do not get the renminbi, then the rest will not be discussed. This is the first step in the internationalization of RMB. By importing settlement, I buy your stuff, I pay you RMB, so that RMB is out of circulation. < /p >
The second step is to allow non residents to invest in Renminbi assets in Hongkong, Taiwan, China, and foreign residents in P. This is the so-called "RMB reflux mechanism". RMB bonds, < a href= "//www.sjfzxm.com/news/index_cj.asp" > RQFII < /a > and the "Shanghai Hong Kong pass" that we are talking about are actually allowing Hongkong residents and other overseas residents to buy renminbi assets, such as stocks, bonds and so on, through their own holdings of Renminbi. This is a very important step to decide whether the non residents are willing to hold RMB and whether RMB can flow abroad. < /p >
< p > Third, on the basis of the import and export "a href=" //www.sjfzxm.com/news/index_cj.asp "RMB" /a > settlement and reflux mechanism, the central bank hopes that on the one hand, RMB will continue to flow to the outside world, while the demand for RMB by overseas residents will also increase. Over time, the overseas RMB market has gradually expanded. With the growth of overseas RMB stock, the settlement of RMB imports and exports will become more and more balanced. < /p >
< p > finally, the scale of RMB settlement and < a href= "//www.sjfzxm.com/news/index_cj.asp" > investment < /a > is increasing. Various RMB related financial products are constantly emerging, and the liquidity of RMB assets is also getting better and better. With RMB, I can easily buy RMB assets in China, and it is also very easy to change Chinese renminbi assets into Renminbi and then exchange them for us dollars. Of course, there are other conditions, especially RMB credit. < /p >
If P satisfies these conditions, no matter what fluctuations the Chinese economy will take in the near future, whether or not it can obtain foreign exchange spreads and spreads, overseas residents will be willing to hold Renminbi and low yielding RMB assets, that is, the renminbi as a means of value storage, which is the highest stage of international currency. Once this level is reached, the currency of this country can act as "international White Bill" and it can collect seigniorage taxes internationally. The dollar is in that position. If our long-term efforts are made, the RMB will finally be able to make the three functions that I have just said in a large scale, and in particular will eventually become reserve currencies, and the goal of RMB internationalization will be achieved. < /p >