It Is Only A Matter Of Time Before The Renminbi Becomes The World's Reserve Currency.

In recent years, the renminbi has gained developing countries. emerging market With the recognition of developed countries, the process of RMB internationalization is constantly advancing.

Earlier, Standard Chartered Bank said in its report that at least 40 central banks had betting on China's currency, and more central banks are preparing to take the same measures. This trend is emerging in emerging markets as well as developed countries. According to the report, these central banks are moving closer to other currencies. "Many central banks are joining the renminbi in their portfolios".

Recently, a member of the Council of Germany's central bank said that although the current international use of RMB can not reflect China's economic strength, it can become the world in the near future, given its expanding free convertibility. reserve currency One of. The renminbi is expected to become the world's reserve currency, while Frankfurt will become the renminbi's European trading center.

In fact, RMB Internationally recognized four major reforms are capital account liberalization, offshore market construction, interest rate and exchange rate reform. The "four major reforms" are being progressively promoted and achieved some results.

The pilot of the Shanghai free trade zone has promoted the convertibility of RMB and the opening of capital account. Since 2009, the offshore market of RMB has been developing greatly. Now, Hongkong, Singapore and London have gradually grown into the most important offshore market of RMB. In recent years, many Chinese banks have been carrying out international strategies and established branches of Chinese banks around the world, which largely promoted the liquidity of RMB in the world.

In terms of interest rates, the central bank has fully liberalized the interest rate control of RMB loans last year, and the liberalization of deposit interest rates has become the "last leap" in the process of marketization of interest rates in China. From the exchange rate perspective, since the reform, the RMB exchange rate volatility has experienced three expansion. Since March 17th, the floating rate of RMB against the US dollar in the inter-bank spot foreign exchange market has expanded from 1% to 2%. The issue of intermediate price in the reform is also widely discussed by the industry.

In view of this, the reform of RMB internationalization is constantly advancing and constantly being broken. However, in order to become the world's reserve currency, the renminbi must constantly strengthen its credibility. This must be supported by a strong economic foundation and a sound financial system.

After the third Plenary Session of the 18th CPC Central Committee, various financial reform policies have been continuously promoted and implemented, and improving the financial system is also a very important one. Although reform is a long way to go, it is just around the corner to believe that the renminbi will become a reserve currency on the road.