RMB Is Very Skilled.

The International Monetary Fund says that the renminbi will account for 10.92% of the adjusted basket of special drawing rights.

It should be admitted that the renminbi is an outstanding player.

Correspondingly, the share of the US dollar will be 41.73%, the euro 30.93%, the yen 8.33%, and the pound 8.09%.

Needless to say, the latest share of SDR announced in November 30th has shown many profound implications.

First, the old order has been buried.

Before the RMB was put into the basket, the "iron four brothers" were like the four kings, and the iron chairs were not shaken. The weights of the US dollar, euro, pound and yen were 41.9%, 37.4%, 11.3% and 9.4% respectively.

This is the result of the last 5 years' assessment and was revised in October 2010.

From the early 1980s, China proposed the establishment of a fair and just international political and economic new order. Until now, it can be considered that China has achieved partial goals with the international community.

Second, when the renminbi is added to the SDR, it means that the weight of the 5 currencies will be redivided.

The share of the US dollar declined by 0.17%, the euro dropped by 6.47%, the yen dropped by 1.07%, and the pound dropped by more than 3.21%.

The US dollar is still far ahead, and continues to be the only world currency. In contrast, the other 4 reserve currencies, including the renminbi, can be called international currency, but not the world currency.

In other words, Europe has made the biggest concession, a total loss of 9.68%, and the US and Japan only touched 1.24% of the losses, and the United States can say almost no harm.

Third, national strength is the backing of monetary strength.

In the just announced share framework, the euro + RMB = 41.85, greater than 41.73 of the US dollar; but the euro + RMB + Sterling = 49.94 is also less than the US and Japan's 50.06; and the difference between the US dollar and the RMB, 41.73 - 10.92 = 30.81, is almost equivalent to the current share of the euro.

Thus, the delicate balance of the international monetary system in the new Warring States period has been formed.

In the meantime, in view of the huge disparity in the weight between the RMB and the US dollar, the economic scale behind the two is getting closer. It is not hard to imagine that the two currencies have a functional relationship.

The long-term trend and short-term performance of these two currencies directly reflect the complex linkage between the world's largest developing countries and the world's largest developed countries, and will also reflect the state of competition and cooperation between China and the United States, as well as their respective relations with other countries in the world.

Ability.

Fourth, the calculation method of adjusting weight has its own defects.

The current methods are inherently unequal, relying too heavily on major central banks that issue world currencies and international currencies. The currencies of other larger economies have little reference function, and the rest of the world will not consider them.

Secondly, the situation of official foreign exchange reserves has nothing to do with the importance of a country's currency in the international financial trading system, and foreign exchange market liquidity, capital market activity, derivatives trading volume, and high utilization ratio of financial assets valuation, that is, market supply capability, seems to have more advantages.

Furthermore, the current formula follows the inertia of the Bretton Woods system and gives exorbitant weight to the export.

Fifth,

Demand is expected to increase unprecedentedly.

The SDR's acceptance of the renminbi indicates that the most authoritative international Monetary Fund in the international financial field has formally endorsed the status of RMB as the international reserve currency.

As a result, the renminbi has become the official reserve candidate for the 188 member states of the fund.

As an international means of payment and reserves, the renminbi has been accepted by the whole world, and its attractiveness will surely rise, which will help to reduce the pressure of RMB depreciation.

Today, the International Monetary Fund has approved the special drawing rights to be directly exchanged for RMB. Now it has become the second largest trading financing currency, fourth largest payment currencies, sixth foreign exchange trading currencies, international interbank loan currencies and the seventh largest international reserve currency. It will make rapid progress, and the issuance of Renminbi denominated bonds will also become commonplace.

Sixth, China

The promotion and the rise of international competitiveness.

China's financial reform, in the short term, is market-oriented reform of interest rates and exchange rates.

In the long run, it is the pformation and upgrading of the economy and the smooth opening of finance, so as to create a financial market with diversified subjects, pparent rules, deep and wide scales, good financial infrastructure and a complete regulatory system, which can serve the real leap forward of the real economy and serve the realization of the great dream of China and the great rejuvenation of the Chinese nation.

It is worth noting that in the process of RMB's accession to the basket of SDR currencies, the Chinese authorities and the International Monetary Fund have reached a stable and effective exchange and two-way incentive mechanism.

The latter put forward a series of standards and requirements, which will help speed up China's financial reform and benefit the internationalization of RMB, while the former provides the most vigorous, most potential and challenging international financial theory incubator and a global governance policy proving ground in the world today.

Seventh, the new currency basket further confirms the dramatic evolution of the international financial order.

The Asian investment bank, which was initiated by China, was a great change in the United Kingdom after March 12, 2015, when the United States made a great effort to change it, and all countries were rushing to look forward to it, thus forming a financial system innovation that had never been seen before in modern economic history and Yu Jinyu was spectacular.

Europe can be seen as an ally of China's current financial reform, but the neighboring countries of Africa, Latin America and China are the strength and leading force to realize these financial changes.

This need to be remembered by China's top decision-makers and policymakers of many fronts.