The Appreciation Pressure Should Be &Nbsp; Foreign Trade Settlement Should Use Renminbi As Far As Possible.

According to data released by the US Department of labor, the number of non-agricultural employment decreased by 95 thousand in September, and the unemployment rate was unexpectedly maintained at 9.6%.

American politicians believe that if forced

Premier Wen Jiabao delivered a speech in the United States earlier this month.

It can be seen that the most fundamental reason for the pressure of RMB appreciation is China.

Foreign trade settlement strive to use RMB

Before 2009, the internationalization of RMB is still a theoretical research topic to a large extent.

Last year, it was recognized by industry experts as the beginning of RMB internationalization.

This year, RMB internationalization began to enter the "speed up period".

In April 8, 2009, the executive meeting of the State Council decided that the 5 cities in Shanghai and Guangdong provinces, including Guangzhou, Shenzhen, Zhuhai and Dongguan, will conduct cross-border trade RMB settlement.

This will greatly facilitate RMB's valuation and settlement in international trade, expand the scope of RMB settlement from part of border trade to the bilateral trade of Hong Kong and Macao and ASEAN, and even the entire international trade, and effectively promote the regionalization of RMB.

Since June this year, RMB cross-border trade settlement has been extended to 20 provinces and municipalities, and overseas institutions have been allowed to set up RMB settlement accounts in pilot areas.

HSBC recently released its global trade report in Hongkong. It believes that with the promotion of RMB in Global trade, more cross-border RMB trade settlement will emerge in the Asia Pacific region.

According to the report, about half of the foreign trade enterprises surveyed by Hongkong and Malaysia indicated that they would consider using RMB settlement in cross-border trade in the next 6 months, while 24% of the Chinese mainland importers and exporters showed the same intention.

Promoting Renminbi in international financial markets

In July this year, the central bank and the Singapore Monetary Authority signed a bilateral currency swap agreement of 150 billion yuan. At this point, the currency swap countries reached 8.

In fact, currency swap refers to the exchange between the two debt funds with the same amount, the same period, the same interest rate method, but different currency, and the currency swap of different interest rates.

The purpose of currency swap is to reduce the cost of capital raising and prevent losses caused by exchange rate changes.

In August, the central bank announced that it allowed foreign banks to participate in China's interbank market bond trading and opened up a channel for the return of RMB investment.

So far, the circulation path of RMB outflow, offshore offshore circulation and reflux has been completed.

Wang Daxian, senior economist at the State Administration of foreign exchange, said that this is the key to the internationalization of RMB.

A series of initiatives show that the internationalization of RMB is entering the "stride across the horizon", and is moving towards the opening of capital account and financial process.

Ba Shu song, deputy director of the Finance Research Institute of the State Council Development Center, believes that the specific measures to promote RMB internationalization through the international financial market are also useful for direct investment from RMB.

This can directly improve the circulation and identification of the RMB in the related areas, and it is worth trying and popularizing.

In addition, the financial center for building the RMB market in Shanghai will also be built in Hongkong.

Just as New York is in the US dollar and London is sterling, the establishment of a financial center in Shanghai can form the pricing center and settlement center of RMB, giving play to the "aggregate effect", which can lay a good market foundation for the internationalization of RMB in the future.

Buying European bonds to "unite Europe to resist America"

Just as Europe is deeply in debt crisis and the economic recovery is still uncertain, Premier Wen Jiabao's official visit to Greece clearly stated that China's foreign exchange reserves have already bought and held Greek bonds, and will take a positive attitude in the subscription of new Greek bonds.

Premier Wen also said that China does not reduce Euro bonds and supports the stability of the euro.

In fact, in the camps that force RMB appreciation, western countries are not monolithic.

Geithner, the US Treasury Secretary, announced that at the summit held in South Korea in November, other countries would be mobilized to force China to accelerate the pace of RMB appreciation.

But interviews with G20 officials in the western media show that Geithner will be very thin in Seoul, and he admits that few countries are willing to fight China.

"Compared with other countries, the United States is more anxious to gain benefits from the RMB issue," said a eurozone finance official who asked not to be named. "This is more like a bilateral affair. Other countries are watching. They think they are not very meaningful or are not interested at all."

Song Hongbing, author of the book "currency wars", believes that China's purchase of Greek bonds will at least lessen the pressure on the euro or the EU's public opinion about China's exchange rate, especially when Europeans realize that cash in China can bring huge benefits to their economic recovery.

So in this regard, China has a very important influence between the United States and Europe, so Europe will not unilaterally and unconditionally follow the United States to impose pressure on exchange rate pressure on China.

Experts interpret: encouraging RMB export is the fundamental way to relieve the pressure of appreciation.

Liu Junmin, the winner of Sun Yi Fang's economics and director of the virtual economy and management research center of Nankai University, acknowledged that China's current double surplus resulted in a large increase in foreign exchange reserves, which is similar to the situation faced by Japan and the Federal Republic of Germany from 70s to 80s of the last century. The former adopted a policy of "pushing back", that is, encouraging foreign investment in foreign countries and limiting the inflow of foreign hot money.

Germany adopted a policy of "Persuasion".

But then Japan took the road of bubble economy, while the Federal Republic of Germany grew steadily until the creation of a new international hard currency "euro" based on Mark.

Liu Junmin said that in 1960s, when the US sustained its current account surplus, it also exported US dollars through capital account deficit. This way has great reference significance to our country. It can not only maintain the normal development of our manufacturing economy, but also alleviate the pressure of RMB appreciation.

From the lessons of Japan and the successful experience of Germany, the internationalization of RMB is just around the corner. Once the RMB appreciates substantially, the door to internationalization of RMB will be closed.

At present, China should seize the opportunity to push forward the convertibility of the RMB and let the RMB go into the ranks of reserve currencies. This is also conducive to providing support for the stability of the US dollar exchange rate and avoiding economic fluctuations in the world.