Recent Exchange Rate Fluctuations Will Not Affect The Pace Of RMB Internationalization.

There is no shortage of topics about Renminbi. Over the past few days, the renminbi has once again attracted global attention. At the end of 1 this year, the interbank RMB dollar spot rate reached its lowest level close to eight months. Immediately after that, the global banking financial Telecommunications Association (SWIFT) released the latest report that the yuan replaced the Canadian dollar and Australian dollar in November last year, followed by the US dollar, euro, pound and yen, becoming the fifth largest payment currency in the world.

The same happened at the beginning of last year. In February 27, 2014, the payment data released by the global Interbank Financial Telecommunication Association (SWIFT) showed that as of January 2014, the market share of RMB payment continued to rise, ranking seventh in the world over the Swiss franc, ranking the ten largest payment currency in the world in 3 consecutive months, accompanied by an increase in the central parity and spot exchange rate of RMB against the US dollar and a short-term downward trend.

Despite the recent devaluation of the renminbi, which worries the RMB internationalization process, most of the respondents believe that the short-term fluctuation of the RMB exchange rate will not change its international trend. Although currency stability is an important condition for internationalization, the fluctuation of the market is normal. The market-oriented exchange rate formation mechanism will further accelerate the pace of RMB internationalization.

With the rapid development of China's economy and foreign trade, RMB is developing from an international trade settlement currency into an investment currency, and is rising rapidly in the direction of becoming an international reserve currency.

In July 2009, the first cross-border trade RMB settlement business was completed in mainland China and Hongkong SAR, marking the entry of cross-border trade RMB settlement business into substantive operation stage. In the past 5 and a half years, the path of RMB internationalization has grown wider and wider.

Global Bank Finance Wim Remaks, director of the bank's marketing department of the Telecommunications Association, said that the RMB becoming the fifth largest payment currency in the world is an important milestone. It is a sufficient evidence of RMB internationalization, representing the spanition from emerging currencies to commonly used currencies. According to the data released by the global bank Financial Telecommunication Association, as of December, the global payment of RMB reached a record high of 2014, with a global share of 2.17% and a market share of 2.69% yen. In January 2013, the share of RMB in the global payment market was only 0.63%, ranking thirteenth in the world.

"In December 2014, the value of Renminbi payment increased by 20.3%, exceeding the growth rate of 14.9% of all other currencies in the same period. Over the past year, the total value of Renminbi payment has increased by 102%, while the growth of all currencies in the same period is only 4.4%. " The global bank Financial Telecommunications Association said. At the same time, its report holds that the appreciation of the renminbi and the increasing attraction of it as an investment channel are driving the increasing use of RMB in international payments.

Cross border RMB business comes from Trade settlement However, experts believe that the internationalization of RMB depends on the choice of customers, and multinational enterprises will play an important role in it. Multinational corporations pay more attention to the benefits of using Renminbi in their daily operations. A good financial environment and abundant RMB products can enhance the efficiency of enterprise settlement, reduce the cost of exchange and stabilize the supply chain between upstream and downstream enterprises. In addition, RMB Incorporating the global or regional means of financial management can also enhance the possibility and interest of multinational companies to use Renminbi overseas and the possibility of using renminbi to finance.

Chen Yulu, member of the monetary policy committee of the people's Bank of China, said that the next step is to jointly drive financial spanactions and trade valuation settlement to be an ideal model for RMB internationalization. In particular, if the Asian infrastructure investment bank and BRIC development bank go smoothly, it will promote the substantial growth of RMB outward direct investment and RMB credit.

Looking ahead, Chen Yulu predicts that, given the internationalization of the pound and yen in recent years, around 4%, if there are no major adverse events, the renminbi will hopefully be able to keep pace with the pound and yen. Li Daokui, Professor of economics and management at Tsinghua University, is more optimistic. He believes that if there is no major accident, the future yen and pound will gradually be placed on the RMB in trade and financial spanactions, and the "three carriages" of the US dollar, euro and Renminbi will come into being.