1. RMB is not freely circulated

This is related to our country’s financial system. All the currencies mentioned above can circulate freely, except the RMB, because we still implement foreign exchange controls under the capital account. This issue is quite complex, so I won’t discuss it too much in this article. You just need to remember the conclusion. The inability of RMB to circulate freely means that its use is restricted and not so convenient.

To give an example that may not be appropriate, if you use a mobile payment app, you must report it in advance when paying and collecting money, and you can only use it after approval, or you can only use it within 1,000 yuan per day. You have a free usage limit. If you exceed it, you have to report it. Will you still use it? Obviously you will delete this app from your phone immediately, and it’s not like there are no other apps available. 2. The RMB has not yet found a suitable anchor.

The anchor of a currency is actually a reflection of its credit and value. The anchor of the U.S. dollar is oil. When trading oil with OPEC countries, you must use U.S. dollars. Having U.S. dollars means there is oil. Every country needs oil, so everyone needs U.S. dollars. As a result, the US dollar has become the reserve currency of countries around the world. Everyone has US dollars in their hands, and they will naturally use them when buying and selling other commodities. What is the anchor of the RMB? Huang Qifan mentioned in his speech that we need to find a suitable anchor and not anchor the US dollar. In other words, the current anchor of the RMB may be the US dollar, but it is not as obvious as the Hong Kong dollar and other currencies of other countries. Anchoring the US dollar means two things. First, we recognize the credit and value of the US dollar. Second, the credit and value of the RMB are not enough. In order to enhance the international status of the RMB in the future, we must find a suitable anchor for everyone to use the RMB. 3. People are not used to using the RMB

The internationalization of the RMB has not been proposed for a long time. Although it has achieved good results in the process of promotion, it cannot be compared with the US dollar, which has had the status of an international currency for decades. Countries around the world are already accustomed to using U.S. dollars, and they have a lot of U.S. dollars "reserved" at home. Now it is really not easy to ask them to use RMB for settlement. Firstly, I didn’t adapt so quickly, and secondly, I was reluctant to let the U.S. dollar wealth I had accumulated turn into waste paper. Everything has a process of adaptation, and we cannot rush it. The above are the reasons why there are not many countries in the world using RMB for transactions. It can be seen that there are both internal and external factors. The good news is that as China's strong RMB trade volume is rising rapidly, more and more countries are beginning to trust RMB and are willing to use RMB for settlement in certain scenarios. As time goes by and the above three reasons are gradually resolved, the RMB is very likely to challenge the status of the US dollar as an international trade currency in the future.