RMB Internationalization To Increase Momentum

The SWIFT report shows that the share of the renminbi in the global payment business is still the highest in the world, accounting for 70% of the value of the market. Over the past two years, many countries have joined the renminbi to compete for the global payment business. The share of these countries has increased from 17% in February 2013 to 25% in February 2015.

Singapore and London are strong financial centres in their respective regions. These two centres play a key role in promoting the adoption of Renminbi in other regions. In addition, over the past few months, with the emergence of other offshore RMB settlement centers around the world, including several countries outside the Asia Pacific region, the use of Renminbi has also been increasing. The newly added settlement centers include:, ",", ",", ",", ",", ",", "and". The above areas occupy the largest share of the offshore settlement center using Renminbi as well as RMB.

"More and more countries and regions are using renminbi, which is the direction of RMB. Internationalization The best evidence. " SWIFT Asia Pacific payment director Michael Moon said: "global RMB The amount of payments will fluctuate. In fact, its value has declined since last month. However, the yuan has been widely supported by more countries and regions outside the country, highlighting its international utilization, which means that there will be more potential settlement centers and further development in the future.

In February 2015, the yuan fell to the seventh place in the world, which accounted for 1.81% of the total currency payment, down 20.4% from January. The decline may come from the seasonal impact of the Chinese Lunar New Year. Over the same period, the payment value of all currencies fell by 9.3%. SWIFT (Global Bank Financial Telecommunication Association) latest RMB tracking shows, Hong Kong Offshore countries and territories accounted for 25% of the Yuan's payments, 17% after two years ago.

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A 5 year assessment will take place in the second half of 2015. After the gold and dollar proved to be in short supply, the SDR, founded in 1969, aims to support the Bretton Woods system with fixed exchange rates. The addition of Renminbi to SDR will bring the renminbi into the basket of currencies that IMF members can calculate to official reserves.

Canada's Scotiabank has recently said in a report that China's determination to open its capital account and reform its exchange rate mechanism foreshadowed that if the RMB was included in the basket of the International Monetary Fund (IMF) special drawing rights (SDR), then the weight in the basket would be higher than that in the pound and yen.

Sacha Tihanyi, the foreign exchange strategist of the bank, said that from the perspective of international income data, the size of exports of goods and services is obviously only from this perspective. The weight of the renminbi is unlikely to exceed that of the US dollar and the euro, but it is expected to exceed the weight of the Japanese yen and the pound.

The report shows that Chinese policymakers have shown a willingness to push ahead with exchange rate and capital account reform. Tihanyi pointed out that the export scale and the use of RMB in trade settlement indicate that its weight in SDR will be relatively high, but the weight as reserve currency will remain relatively low.

IMF President Lagarde (Christine Lagarde) said at the end of March in China that IMF, like the Chinese government, is interested in putting the renminbi in the basket of IMF reserve currencies. She said that this is not a question whether it will be included, but when.

To win the IMF's reserve currency status, the renminbi must be "freely available". The board of directors of the IMF executive board has great room for explaining this term. The committee will make a decision later this year. Although China is prudent in managing the value of the renminbi, it does not necessarily lead to the exclusion of IMF from the renminbi.

Over the past few years, China has intensified its efforts to promote the internationalization of RMB, which may help the renminbi meet the IMF's "free use" standard. According to the office of the Commissioner for foreign affairs of the Ministry of foreign affairs of China, the proportion of Renminbi payment to China has increased from 0.02% in 2009 to nearly 25% last year. At present, there are 15 offshore RMB clearing centers all over the world, and 20 central banks, including Russia, Britain and Australia, have signed a currency swap agreement with China, with a total scale of 430 billion US dollars.

However, it is certain that even if the renminbi becomes a IMF approved reserve currency, it is unlikely to replace the dominant position of the US dollar. At present, the US dollar accounts for more than 60% of the world's foreign exchange reserves. Even optimistic economists say that the renminbi may take ten to twenty years to reach a small part of this level.