The goal of RMB internationalization is simply that RMB, as an international currency, can go out or come back. Among them, it is easier to go out and more complicated to come back. As the largest trading country in the world, China is a big country in tourism and service. It is natural for RMB to flow to the world through various channels, and all countries in the world certainly need RMB. However, RMB is not a fully convertible currency. Therefore, even as an international currency, the amount of RMB converted into US dollars is still controlled by the amount. For example, the RMB converted into dollars per person per year is only $50,000. Similarly, when the RMB goes out as an international currency, that is, it flows out through various channels, and the backflow also needs a quantity control, otherwise the RMB will be a completely freely convertible currency. Therefore, under the circumstance that RMB is not fully convertible, it needs a gradual process to realize the internationalization goal of "going out and coming back".
RQFLL is an institutional arrangement promoted by the People's Bank of China, which allows the orderly and controllable return of overseas RMB funds when RMB is not fully convertible. RQFLL was first launched in Hongkong, China, and then promoted in Singapore, Paris, London and other places. Finally, the United States, the world financial center with the largest financial market, finally reached a strategic agreement with China on RMB internationalization. This means that RMB has officially become an international currency and one of the world currencies, which will further promote the process of RMB full convertibility. For example, China will accelerate the reform process to facilitate residents' overseas investment and further realize the marketization of RMB exchange rate.
At present, the monetary amount of RMB (M2) is more than 1.4 trillion yuan, which is roughly equivalent to the monetary amount of US dollars at the current exchange rate. Once the RMB enters the ranks of international currencies, its constitution lags behind the US dollar and the euro. However, because China's annual economic growth rate and annual money supply growth rate are higher than those of the United States and Europe, the usage and influence of RMB in the world are increasing year by year. Domestic investors have been paying attention to the trend of the dollar, especially whether the United States raises interest rates and other information. Only the United States is everything. Today, Americans have begun to use RMB to settle accounts and invest in China, and the external influence of China's monetary policy is bound to expand gradually. At present, among the 140 trillion M2 in China, the statutory reserve ratio of commercial banks is about 17%, and the scale of funds regulated by the People's Bank of China ranks first in the world. The People's Bank of China has sufficient confidence and measures to cope with the US interest rate hike and the fluctuation of world funds. Therefore, people in the stock market are often worried about the US interest rate hike and China's capital outflow, which is completely outdated. At present, China has abundant funds, but everyone lacks confidence, and the amount of funds willing to enter the stock market is currently too small. So the stock market is rising at the bottom of the world, which is a totally disproportionate reality.
According to the British "Guardian" report, the purpose of the reconstruction of the City of London in the 1970s was to break away from the American market and become a trading center for the euro and the dollar. Due to the current market depression, in order to seek competitiveness, London turned its attention to the slowly rising reserve currency-RMB.
Measured by the international currency dollar, Britain's economic recession is huge. From 2007 to 20 10, Britain's GDP dropped by 562 billion US dollars, eight times that of Italy's economic recession, and there is no obvious sign of recovery so far. Therefore, Britain urgently needs to find new economic growth points to get rid of the recession.
"Osborne hopes to replicate Germany's success in manufacturing to financial services." The article in the Guardian said. Germany's recovery from the global financial crisis benefited from its accurate positioning of China. At present, the number of German products exported to China far exceeds that of the United States. In the past four years, China's economy has increased by 42.2%, so after weighing the stagnant economic situation in the United States, Germany turned its target to the rapidly developing Asian countries.
In addition, Britain also has its advantages in competing for the offshore center of RMB. London is the world's largest foreign exchange trading center, accounting for about 37% of the global daily trading volume of 4 trillion US dollars. The location of the Financial City will never go wrong, and traders in all major time zones can trade here.
The internationalization of RMB has accelerated.
Britain's active participation in offshore RMB business cooperation highlights the current situation that all parts of the world are striving to become offshore RMB centers.
The Guardian said that Britain's decision to become an offshore RMB center was certainly correct. If not, China will only let Frankfurt, Dubai, Singapore or other centers do business with Hong Kong.
Although London may apply to become a European version of Hong Kong, China regards the whole of Europe as an important partner. The Guardian said, "Britain is too small, and only large economies such as the United States and the European Union can play this role. Therefore, China has repeatedly expressed its support for European integration. Unfortunately, the British Prime Minister has just issued the voice of withdrawing from the EU. "
At the same time, the Financial Times pointed out that Britain has to wait for the further internationalization of the RMB, because the reason to prevent the RMB from becoming the main currency of the financial center is that the RMB cannot be exchanged at will.
London used to be the global dollar trading center in the 1960s. American companies like General Electric can take out dollars from Britain at will, and it is also convenient to borrow dollars. In contrast, China enterprises are not allowed to invest or borrow money overseas without government permission, which is rarely approved by the government.
China's offshore funds account for only a small part of its onshore currency. The total amount of RMB deposits in Hong Kong has reached 630 billion yuan (about US$ 654.38+000 billion), double that of last year, but still less than 654.38+0% of the deposits in Chinese mainland.
However, foreign-funded institutions have clearly seen that the internationalization of the RMB is advancing.
On 17, the Hong Kong Monetary Authority said that it had appropriately relaxed some regulatory requirements for Hong Kong banks to operate offshore RMB business, and doubled the upper limit of 10% RMB assets or liabilities to 20%. In addition, the Hong Kong Monetary Authority has also expanded the types of RMB assets that banks can include in the RMB risk management limit.
Chen Delin, Chief Executive Officer of HKMA, expressed the belief that these measures will increase the development space of offshore RMB business of Hong Kong banks.
The internationalization of RMB is about to capture the last fortress-the United States.
20 16 On June 7th, Yi Gang, deputy governor of the People's Bank of China, attended the briefing of the 8th China-US Strategic Economic Forum, and reported the results of the 3rd China-US Economic Dialogue. On the morning of June 7th, one of the highlights was that China decided to grant the United States the RQFII quota of 250 billion RMB. Yi Gang said that with the continuous internationalization of RMB, RMB clearing and settlement business has made further development in the US market, and China will also set up RMB clearing banks in the US.
Yi Gang explained why he was given such a high quota of 250 billion, mainly considering the size of the American market. It can be seen that as an important tool to promote the internationalization of RMB, China has granted RQFII quotas totaling over one trillion yuan to 10 countries and regions around the world, with the highest being 270 billion yuan in Hong Kong, followed by10 billion yuan in Singapore and 80 billion yuan in London and Paris. The so-called RQFII, after the quota is approved, overseas institutions can raise overseas RMB funds to directly invest in China's domestic capital markets, including the stock market and bond market. It is worth noting that China has given the quota, and the corresponding countries or regions may not use it all.
According to the data released by the State Administration of Foreign Exchange, as of May 30th, 20 16, 165 institutions in 0 countries and regions around the world have been allowed to use the RQFII quota of 50017.68 million yuan.
It is worth mentioning that the central bank's move should be a prelude to supporting the establishment of a RMB trading center in the United States. The US Treasury Department announced before this dialogue that setting up a RMB trading center in the United States is one of the important topics.
Generally speaking, China supports a country or region to set up an offshore RMB market. The central banks of both sides need to sign a local currency swap agreement, obtain the quota of qualified foreign institutional investors in RMB, set up a RMB clearing bank, and then issue RMB-denominated financial products to develop the RMB financial market.
With the entry of RMB into the Special Drawing Rights (SDR) basket of the International Monetary Fund, the momentum of RMB internationalization has been unstoppable. Up to now, London, Paris, Singapore, Hong Kong, Frankfurt, Toronto, Tokyo and other major global financial centers have set up corresponding RMB trading markets.
On the other hand, due to various reasons, new york has fallen behind in the wave of RMB internationalization. Of course, from China's point of view, new york has also become the last bastion of the global layout of RMB trading.
Regarding the prospect of establishing a RMB trading center in the United States, Ding Yifan, a researcher at the the State Council Development Research Center in China, believes that "if new york becomes the RMB international settlement center, it will mean that the RMB will become the beginning of the world currency in essence".
In this regard, Yi Gang also said at the briefing that RMB internationalization is to put RMB, USD and Euro together. "All currencies are treated equally and in a position of fair competition," he said with a generous smile. "We want the market to choose between RMB and USD. Of course, we are happy to use the renminbi, and it is also a good thing to choose the US dollar and the euro. "
In fact, the United States has already started the idea of setting up a RMB trading center.
201165438 on October 30, 2005/kloc-0, Michael Bloomberg, the former mayor of new york and founder of Bloomberg, joined hands with senior financial officials to set up a working group on RMB trading and clearing, taking the lead in promoting RMB trading on wall street and lobbying American and Chinese officials to establish a RMB clearing center in new york. Many large Chinese and American banks, including Citigroup, JPMorgan Chase, Goldman Sachs and Industrial and Commercial Bank of China, also joined the working group. The working group said that the introduction of RMB trading and clearing services will reduce the cost of goods and services imported by American companies from Asia and create business opportunities for American financial institutions eager to carry out RMB hedging and other businesses. New york's rival, Chicago, has taken action. Chicago Board of Trade Group launched RMB futures contract 20 14. From a practical perspective, the United States has also begun to participate in the offshore RMB market. 2065438+On May 20th, 2006, China Industrial and Commercial Bank of China new york Branch issued RMB 500 million certificates of deposit, which was the first RMB financial product settled by the Securities Depository and Clearing Corporation (DTCC). (-from the newspaper)
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