Promoting RMB Internationalization Is A Better Time Window.

< p > under the influence of multiple negative factors, the renminbi has seen a continuous decline in the past few years.

Observers believe that for a Chinese economy that has been growing steadily for many years and that its currency is heading for internationalization, only because of the negative fluctuations in macroeconomic fundamentals or external financial environment for a while, it is no doubt that the argument that "the renminbi will depreciate for a long period of time" is undoubtedly inappropriate.

The broad fluctuation of Renminbi value in recent years, rather than the so-called inflection point of the appreciation trend, is called "the market oriented drill" that is necessary to "strengthen our health" before internationalization.

After years of continuous accumulation in many aspects, the internationalization of RMB is coming to the "beginning of the year".

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Since the beginning of this year, a large number of < a href= "http://www.91se91.com/news/index_cj.asp" > international capital < /a > outflow from emerging markets has resulted in a large number of a href= "http://www.91se91.com/news/index_cj.asp" emerging economies "/a" and currency exchange rate suffered heavy losses.

Since the end of last year, the renminbi, which has just experienced a rapid growth in foreign exchange, has been continuously derogatory since February. Although there are obvious factors of weak economic recovery, it can also be understood as a "fall" in line with other emerging currencies.

The obvious abnormal influx of hot money in short-term arbitrage is also worth RMB "color".

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< p > it is worth noting that the high tide of the current RMB's sharp derogation happened just after the announcement of the central bank's announcement of further expansion of the RMB exchange rate's single day volatility. This undoubtedly demonstrates the determination of the monetary authorities at this stage to persist in the market-oriented reform of the RMB exchange rate and continue to push forward the internationalization of RMB.

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"P > central bank governor a href=" http://www.91se91.com/news/index_cj.asp "> Zhou Xiaochuan < /a > during the two sessions of the National People's Congress said that the proportion of RMB used in international trade and investment is still relatively low, and there are still many" family businesses "not doing well in the internationalization of RMB, including steadily promoting and gradually realizing RMB capital account convertibility and so on.

Analysts believe that in the current stage of devaluation of the renminbi, the monetary authorities still dare to continue to substantially amplify the volatility of the RMB exchange rate and allow the market to make more full exchange pricing for the RMB exchange rate, indicating that the central bank remains firm and confident in the completion of the "home operation" of RMB internationalization.

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< p > in fact, compared with the mature, liberalized and marketable currencies in the international financial markets such as the US dollar and the euro, the internationalization of RMB needs further improvement or "homework" which needs to be completed urgently. It includes not only the enlargement of exchange rate elasticity, but also the marketization pricing mechanism of RMB exchange rate, as well as the wider use of RMB in international trade settlement, the full convertibility of capital account, the opening of domestic financial market, and the establishment of an international reserve currency.

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With the gradual expansion of the RMB exchange rate, more currency can be traded directly with the renminbi. The degree of marketization of the RMB exchange rate is deepening and the greater degree of two-way fluctuation will make global investors more willing to accept RMB and participate in the RMB exchange in the foreign exchange market; as the monetary authorities continue to lift the restrictions on the use of the renminbi, provide more Renminbi in trade, and continuously strengthen currency swap with many countries, the cross-border use of RMB will become wider in Global trade and investment; and in the future, the further promotion of RMB in capital account convertibility, more sovereign wealth funds and all kinds of investors will be willing to invest in China's stock, bond and other financial markets, and will accept the renminbi as an important reserve currency. < p > for example.

It is foreseeable that with the gradual improvement of various conditions and the gradual completion of the "homework", the RMB will usher in a great leap forward towards internationalization.

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