The International Financial Order Should Be Rebuilt: Asian Investment Bank Starts To Reconstruct The Global Financial Governance Mode.

In recent years, there has been a global currency exchange boom. Especially since the global financial crisis triggered by the subprime mortgage crisis in the United States has spread to more and more countries and regions, the currency swap agreements among central banks have been signed more frequently.

This kind of financial structure based on currency swap Network is becoming a new trend.

At present, China establishes RMB clearing arrangements with European and Asian countries, approves RMB qualified foreign institutional investors (RQFII), and the agreement on currency swap agreements is an important step in the process of RMB internationalization.

It can be expected that after the establishment of the Asian investment bank, a financing mechanism and network with RMB as the core will be formed, and the RMB will be gradually developed into the international reserve currency.

The official launch of Asia Investment Bank marks a new milestone in global financial governance.

Since the global financial crisis in 2008, the world structure has changed drastically, and the global economy and finance have entered a big challenge.

With the new stage of big adjustment, the international financial order needs to be reshaped urgently.

The key to building a new international financial order is to improve the global financial governance structure.

Asian investment bank intends to reach 57 Member States, covering five continents. We have agreed on the high quality sub investment bank agreement and follow the existing international multilateral development banks' standard operation and standards, trying to create a new inclusive, open and pparent global financial institution.

From the perspective of the old global governance system, the establishment of these institutions basically follows the "Washington consensus", and the discourse power of developing countries is seriously missing, and the distribution of interests in the global governance structure is not balanced.

Under such a big background, the original international organizations can no longer undertake the heavy responsibilities of global governance. There is an urgent need for a new governance structure to reflect the new concept of global governance, which is "fair, win win, interest" and risk sharing.

Since 2008, the global financial map has undergone major changes. Under the great pressure of resolving the crisis, the core governance mechanism of the global economy has changed from G7 to G20.

And Asia Investment Bank, based on building a community of interests, a community of destiny and a community of responsibilities, will eventually realize the concept of global financial governance which is common development and prosperity. It can be seen as the starting point for creating a new pattern of global financial governance.

The solution to the imbalance of financial benefit distribution is to reconstruct the whole world.

The core.

In recent years, a large number of financial resources have been accumulated in Asia, which accounts for about 2/3 of the total foreign exchange reserve assets.

However, the capital is allocated to a large number of low yielding US dollar assets.

Therefore, the establishment of Asia investment bank can not only provide efficient and reliable financial support for medium and long term for the Asian economy, consolidate infrastructure construction, but also enhance the efficiency of Asian capital utilization through leverage, thus promoting the all-round interconnection and construction in the region.

Of course, we must rely on multilateral financing to solve the interconnection problem of "one belt and one road".

Multilateral financing can not only rely on the financial and material resources of a few countries, but also need to be diversified. The relevant governments, financial institutions and private capital should increase investment and jointly plan for financing, and give full play to the advantages of government, policy and development finance.

At the same time,

We should also make good use of the twenty funds such as China ASEAN, Eurasia, central and Eastern Europe, and the newly established Silk Road Fund.

We should encourage private capital to take part in the construction of "one belt and one road", and combine PPP mode and BOT mode effectively, so as to enhance private capital participation by raising long-term potential returns.

Encourage private capital, insurance companies, social security funds, pension funds and other institutions to participate in the silk road fund construction, and guide commercial funds and social funds to participate.

In the long run, the establishment of Asia Investment Bank will have a profound impact on the international monetary system with the dollar as its main body.

Looking at the trend of global development, a RMB currency swap network covering Europe is taking shape.

In fact, after the global economy and the regionalization alliance of Global trade, there is also a new trend of regionalization alliance represented by "currency swap Network" in the field of Finance and currency.