RMB Is The Most Popular, Fastest Growing And Most Potential Currency.

The German central bank and the Bank of England recently signed a memorandum of understanding with the people's Bank of China (P) to establish RMB clearing mechanism in Frankfurt and London. RMB is currently the most popular, fastest growing and most potential currency. < /p >
After the global financial crisis, the sluggish us real economy led to the "a href=" http://www.91se91.com/news/index_c.asp "US dollar < /a" continued sluggish, and the yuan came from China's "growth engine" role of the world economy and continued to become strong, and the world began to aspire to hold RMB. In 2009, Hongkong established the first offshore RMB center and officially began the process of RMB internationalization. In April 18, 2011, the city of London first proposed the establishment of a "Western Hemisphere RMB offshore trading center" plan. During the September 2013 G20 summit in St Petersburg, Germany formally proposed to China the request for the establishment of an offshore RMB trading center in Frankfurt. Therefore, at the end of March 2014, the memorandum of understanding signed by the Bundesbank, the Bank of England and the people's Bank of China was the follow-up and implementation of previous plans and requests. < /p >
< p > the city of London is the global circulation hub of the US dollar as the world currency. It has the "circulation heart" status of communicating global financial channels, but London advantage is the center of global dollar assets circulation, and financial transactions cover the whole world. Frankfurt, Germany, is the center of Euro circulation, and financial flows sink into every corner of the euro area. The Sino German memorandum of understanding will set up a direct circulation channel for China's "RMB assets pool" in Frankfurt, so that "European RMB" can be "activated" in trade circulation and financial transactions. Judging from the current situation, Paris will also speed up the process of building RMB offshore trading centers. Because of the influence of France in most parts of Africa, the RMB internationalization process in Africa will also accelerate. < /p >
By the end of 2013, the < a href= "http://www.91se91.com/news/index_c.asp" > /a > has become the eighth largest payment currency and the second largest trade financing currency in the world. The total amount of RMB settlement business in cross-border trade has reached 4 trillion and 630 billion yuan, an increase of 57% over the same period last year. "P" At present, the PBC has signed bilateral currency swap agreements with 29 overseas countries and regions, with a total scale of 2 trillion and 220 billion yuan. < /p >
< p > according to the Research Report on the dynamics and outlook of RMB internationalization released last week by Chongyang Finance Research Institute of Renmin University of China, in 2014, the US dollar index of internationalization is 54.69, the euro is 24.13, the yen and the pound are 4.50 and 4.19 respectively, and the internationalization index of RMB will climb to 1.88 by the end of 2014. From the current speed, it is entirely possible to exceed Japanese yen and pound sterling in two or three years. Now the renminbi has become the eighth largest payment currency in the world and the second largest trade financing currency. In 2013, the RMB settlement business of cross-border trade totaled 4 trillion and 630 billion yuan, an increase of 57% over the same period last year. The proportion of RMB foreign exchange transactions in the world has increased from seventeenth in 2010 to ninth in 2013, and RMB trade settlement has exceeded 16%, and the ratio of import and export has been balanced to 2.2 times from 10 times in 2010. < /p >
< p > > what is the most potential? From the perspective of global a href= "http://www.91se91.com/news/index_c.asp" and financial market < /a >, after the Sino German and Sino British memorandum, the internationalization of RMB will constitute a complementary relationship of time zones. Singapore, China, Hongkong and Europe are at different times. They can form a relay relationship on the trading time and play a "financial sleepless" effect. From the perspective of asset management, it constitutes the relationship between the head office and the branch. From a micro perspective, Singapore and Hongkong are actually the Asian sectors of large financial institutions in Europe. Their functions are distributed by European headquarters. On the macro level, Asian and European financial centres form synergy because of their different functions. < /p >
< p > however, the US dollar accounts for nearly 7 of the total international trade, and foreign exchange and international reserves account for 4. Compared with the total volume of China's import and export trade of more than 4 trillion US dollars, the total volume of RMB 2 trillion and 220 billion yuan is very small. At the end of 2013, the Central Bank of the United States, Europe, Britain, Japan, Canada and other countries almost simultaneously announced the long-term and unlimited multilateral currency swap agreement, which was equivalent to the US dollar's dominance in the international monetary system. < /p >