Good Timing And Clever Arrangement Of RMB Internationalization

< p > < strong > "RMB internationalization" is included in the public document < /strong > /p >

< p > at present, there is an endless stream of discussions in academia, industry and politics about the "a href=" http://www.91se91.com/news/index_c.asp "internationalization" /a. However, in the official statements of the "people's Bank of China" and other relevant government agencies in the implementation of RMB internationalization, the word "RMB internationalization" is rarely seen, more often using the "cross border use of RMB", which may be consistent with our country's "Concealer" and "prudence".

However, in April 2014, a notice issued by the China Securities Regulatory Commission "rarely used" directly used the term "RMB internationalization".

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< p > April 10, 2014, the China Securities Regulatory Commission approved the Shanghai and Hong Kong stock exchange to carry out the pilot mechanism of exchange and interconnection.

The joint announcement issued by the SFC and HKEx on the same day indicated that Shanghai and Hong Kong have three positive meanings. One of them is: "it is conducive to promoting the internationalization of RMB and supporting Hongkong to become an offshore RMB business center.

Shanghai and Hong Kong can not only facilitate mainland investors to invest directly in the Hongkong market, but also increase the "a href=" http://www.91se91.com/news/index_c.asp "investment channel > /a" to facilitate the orderly flow of RMB in the two places.

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The other two major meanings of the P announcement are: it is beneficial to enhance the comprehensive strength of China's capital market through a new cooperation mechanism; it is conducive to consolidating the status of two financial centers in Shanghai and Hongkong.

On the day of the announcement, Zhou Xiaochuan, governor of the central bank, delivered a speech at the Boao forum for Asia Forum Hongkong sub forum dinner. It also highlighted the importance of Shanghai and Hong Kong's "cross-border use of RMB".

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< p > access to information shows that the announcement is the first formal expression of "RMB internationalization" in China's government documents since 2009. Although the SFC is not the decision-making body of China's RMB internationalization, it still shows our determination to push the internationalization of the RMB to a large extent.

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< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > RMB > /a > function of international currency is increasing day by day > /strong > /p >

< p > with the acceleration of RMB internationalization in recent years, the internationalization level of RMB has been increasing.

According to the "RMB internationalization report 2013" released by the International Monetary Research Institute of Renmin University of China, the internationalization index of RMB has been increasing since 2011 (the definition of RMB internationalization index) refers to the global proportion of the various functions of the renminbi from the perspective of international monetary function, which is used to describe the index of the international level of RMB.

Specifically, the index system consists of two categories of indicators, one reflecting the International Valuation and clearing and clearing functions of the RMB, including 5 refinement indicators, including "the proportion of people's settlement in the total world trade"; one category reflecting the international reserve function of RMB, characterized by "the proportion of RMB reserves in the global foreign exchange reserve", reaching 0.87 at the end of 2012, an increase of 49.31% over 2011.

According to their report on the dynamics and outlook of RMB internationalization released in March 2014, the index of RMB internationalization has exceeded 1 in 2013, an increase of more than 50% over the same period.

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< p > from the perspective of monetary function, the functions of the international currency include three aspects: cross-border trade settlement currency, investment currency and reserve currency.

Among them, cross border trade RMB settlement is a key step towards internationalization of RMB.

Since April 2009, the pilot of RMB settlement in cross-border trade has expanded rapidly to the whole country in August 2011, and the cross-border trade of RMB has been developing rapidly.

Central bank data showed that the volume of cross-border trade RMB settlement in the early 2010 was only 506 billion 100 million yuan, and then increased to 2 trillion and 90 billion yuan, 2 trillion and 940 billion yuan and 4 trillion and 630 billion yuan in 2011, 2012 and 2013, and the total settlement in the 5 years since the pilot was nearly 12 trillion.

In the first quarter of 2014, cross-border trade RMB settlement business reached 1 trillion and 650 billion yuan, achieving a year-on-year growth rate of 64%.

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< p > in addition, according to the global Interbank Financial Telecommunication Association (SWIFT), which is a financial industry cooperation organization, providing communications platforms, products and services for more than 10000 banks, securities and financial institutions and business users in over 212 countries and regions, the renminbi ranked seventh in the latest global payment currency issued in May 2014, and has been ranked the first ten in fifth consecutive months since the end of 2013.

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The share of < p > RMB in traditional trade finance (letters of credit and collection) increased from 1.89% in January 2012 to 8.66% in October 2013. The renminbi also exceeded the euro for the first time to become the second most common currency after market.

The SWIFT report also points out that in the past three years, the market share of RMB has surpassed 22 major currencies, including Hong Kong dollar and Singapore dollar, indicating that the RMB has become one of the currencies of world financial institutions and enterprises.

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< p > < strong > RMB exchange rate floating elasticity increased significantly < /strong > < /p >

Marketization of RMB exchange rate is the key to the internationalization of RMB. Strengthening the two-way floating elasticity of RMB exchange rate and maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level are the guarantee for the successful implementation of RMB internationalization. P

In the third Plenary Session of the 18th CPC Central Committee, the party also made it clear that we should improve the formation mechanism of RMB exchange rate marketization.

In March 15, 2014, the central bank announced: "since March 17, 2014, the floating rate of RMB against the US dollar in the inter-bank spot foreign exchange market has expanded from 1% to 2%; the designated foreign exchange banks provide the difference between the maximum us spot cash sale price and the minimum spot purchase price on that day, which should not exceed that of the middle rate of the day's exchange rate from 2% to 3%."

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< p > this is the central bank's fluctuation range of RMB exchange rate expansion third times after 2007 and 2012: in May 21, 2007, the daily fluctuation of RMB exchange rate increased from 0.3% to 0.5%, and from 0.5% to 1% in April 14, 2012.

In addition, since March 19, 2014, the central bank has also launched direct pactions of RMB against New Zealand dollar in the interbank foreign exchange market, forming a direct exchange rate of RMB against New Zealand dollar.

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< p > data show that since the reform of exchange rate system in 2005, the appreciation rate of RMB has been obvious.

As at the end of 3 in 2014, the RMB exchange rate rose from 8.1 yuan in July 2005 to 6.1521 yuan to 1 US dollars, and the cumulative appreciation rate reached 24.1%. According to the statistics of the International Bank of clearing (BIS), the RMB appreciated 34.53% against the US dollar, of which the nominal effective exchange rate of the renminbi appreciated 30.23%, and the effective effective exchange rate appreciated 40.59%.

The annual appreciation of the nominal effective exchange rate and the real effective exchange rate of the 61 currencies of BIS is the top three in 5 consecutive years since 2008.

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< p > however, since 2014, the RMB exchange rate against the US dollar has been weakening, and the two-way fluctuation elasticity has increased.

By the end of 4 in 2014, the central parity of RMB against the US dollar was 6.1580 yuan, which was 661 basis points lower than the end of 2013 and the depreciation rate was 1%.

From January to April, the central parity rate of RMB against the US dollar was 6.161 yuan, the lowest was 6.093 yuan. In the 79 trading days, 33 trading days appreciated and 46 trading days depreciated. The largest one-day appreciation rate was 0.17% (101 points), and the largest one-day depreciation rate was 0.18% (111 points).

After the central bank announced the expansion of the fluctuation range, the average fluctuation of RMB against the US dollar from March 17th to April 30th was 1.1%, of which the maximum amplitude was 1024 basis points, with a magnitude of 1.66%, creating a new high since the reform in 2005.

The central bank's "monetary policy implementation report for the first quarter of 2014" pointed out that in the future, the RMB will have the same flexibility as the major international currencies, and the two way fluctuations will become the norm.

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