RMB Will Be Included In The SDR World'S Third Currency.

The chief economist of the China Banking Association and member of the 13th Five-Year National Development Planning Expert Committee, Ba Shu song, said in Beijing 7 days that the right to join the SDR is not important in itself, and that the impact of a series of financial reforms carried out by Chinese officials is really worth noting.

The "13th Five-Year plan" issued recently suggested that the convertibility of RMB capital account should be realized in an orderly way, and that RMB should be added to the special drawing rights (SDR) to become convertible and freely available currency.

This month, the International Monetary Fund will discuss whether to decide whether to bring the renminbi into the SDR.

It is generally believed that this will be an important step in the internationalization of RMB.

Ba Shu Song said at the annual meeting of the international finance forum held on the same day that if the RMB could successfully join the SDR, it meant that the official had followed the market demand and accelerated.

A series of work in the process of internationalization has been affirmed.

In order to add SDR to the renminbi, China has taken a number of measures in recent years, including promoting the marketization of interest rates and improving the central parity of the RMB against the US dollar.

And so on.

If the renminbi enters SDR, it will become the "third most important currency" in the world, but it does not match the actual level of RMB used in the international market at present.

Therefore, the real point is to speed up the reform and join the SDR as an opportunity to accelerate China's financial reform and further promote the two-way opening of the financial market.

According to the Dow Jones newswires, the IMF Council is scheduled to make a decision on the reserve basket this month and give a positive hint to China that it will be included in its reserve currency basket.

Earlier this week, IMF announced that it would postpone RMB's accession to the SDR assessment. Analysts believe that the RMB should join SDR. successfully.

Wang Tao, China's chief economist at UBS, told foreign media that even if the renminbi enters the SDR, the Central Bank of China will intervene in the exchange rate market, which is more relevant than the market volatility after the reform.

The pressure on RMB depreciation is still large. On the one hand, China's capital outflow is still serious. On the other hand, enterprises and residents will gradually repay the accumulated foreign debt in order to hedge the risk of the appreciation of the US dollar. It is expected that the offshore renminbi will further depreciate against the US dollar to 6.8. in 2016.

In a report to clients in early this week, Jasmine Poh, a strategist at Paris, France, also wrote that although the RMB will stabilize in the short term due to the intervention of the Central Bank of China and the SDR basket, in the medium term, the Central Bank of China will allow the RMB to depreciate in view of the stronger nominal effective exchange rate and the return to the level before the 811 exchange rate reform.

The renminbi is expected to be reduced to 6.62. in the first quarter of 2016.

U.S. Treasury Secretary reiterated conditional support for RMB to be included in SDR

According to Bloomberg news, US Treasury Secretary Jacob Lou told Chinese Vice Premier Wang Yang that if the renminbi meets the existing IMF standards, the United States supports its inclusion in IMF's SDR basket.

According to reports, the US Treasury issued the contents of Jacob Lu and Wang Yang's call. "The dialogue reflects the importance of China's orderly move towards the market exchange rate mechanism at a faster pace".

Jacob said that if the renminbi can meet the existing IMF standards, it will still support the RMB to join the basket of SDR currencies. IMF has released a positive signal to China on the accession of the RMB to the SDR currency basket, and China's fiscal policy to stimulate consumption is very important.

The two sides discussed the reform measures promised by China in the fifth Plenary Session of the 18th CPC Central Committee. The discussions also include the key issues of the G20 summit in Turkey, including the finalization of the TLAC rules, the effective implementation of OECD's tax proposals, and the coordination of the international community and the promotion of cyberspace behavior norms in peacetime countries.

Jacob Lu reiterated the importance of China's progress in market reform, including stimulating consumption through fiscal policies.

IMF allegedly sends a strong signal to China that the renminbi is expected to get the reserve currency status.

Prior to this, IMF plans to decide on the renminbi's accession to the SDR basket in November 30th.