The Yuan'S Formal Accession To The SDR Financial Reform Can Not Be Idle For A Moment.

At 1 a.m. last December 1st, the IMF (International Monetary Fund) officially announced that the yuan joined the SDR (Special Drawing Rights) in October 1, 2016 and became the fifth SDR Basket Currencies parallel to the US dollar, euro, pound and Japanese yen.

The weight of currencies in the SDR basket is RMB 41.73%, euro 30.93%, RMB 10.92%, Japanese yen 8.33%, and Sterling 8.09%.

From tomorrow on, the RMB will officially enter the basket.

For this matter, the mother can not pay less.

In the past year, the mother of the central authorities has been incarnated "desperately for thirteen Lang".

From last year's "811 exchange reform",

Reform, the online payment system of China, the inter-bank bond market and the foreign exchange market are fully open to the offshore sovereign institutions. By April this year, the US dollar and SDR will be used as the reporting currencies.

Reserve data are prepared for the basket of RMB.

Foreign exchange reserves with SDR as the reporting currency will help to reduce the fluctuation of valuation caused by frequent fluctuations in the exchange rate of major countries, more objectively reflect the comprehensive value of foreign exchange reserves, and also help to enhance the role of SDR as a bookkeeping unit.

In addition, there is another important thing to say: the world bank issued the first Renminbi denominated price in August 31st of this year.

Bonds - "Mulan debt".

"Mulan debt" is the first SDR bond issued globally after 35 years. The issuance scale is 500 million SDR, which is equivalent to 4 billion 600 million yuan, with a term of 3 years and a coupon rate of 0.49%.

The central bank said that the subscription ratio of "Mulan debt" has reached 2.47 times, attracting about 50 domestic and foreign agencies to participate actively.

First of all, it enriches the variety of Chinese bond market and the investment channels of investors both at home and abroad, and promotes the opening and development of the bond market.

Second, the SDR priced bonds can make the M-SDR (MarketSDR, the SDR financial instrument on the market) form the two level market.

In addition, SDR bonds can, to a certain extent, serve as a hedge against devaluation, reduce domestic demand for foreign exchange and ease capital outflow pressure.

Finally, expanding the application of SDR will help to enhance the resilience and stability of the international monetary system and enhance the security of China's foreign exchange reserves.

However, Ding Meng, an analyst with the Bank of China investment banking and asset management division, also pointed out that the issuance of SDR valuation bonds by the world bank in China is still at the initial stage of promotion like foreign direct investment. Therefore, it is more symbolic.

According to the fund agreement, SDR is a supplementary reserve asset, which constitutes an international reserve with other reserve assets such as gold and foreign exchange.

As the name suggests, SDR is a drawing right, that is, under certain conditions, holders can use it to extract freely available currencies of designated members of the IMF.

The original pricing principle of SDR is the equivalent of gold in the unit dollar. It can replace the gold to settle the balance of payments, so it is called paper gold.