Through the improvement and perfection of the successful experience of the financial mechanism of Shanghai Free Trade Zone, it can be quickly popularized in other parts of the country such as Guangzhou and Tianjin, promote the development and construction of the national free trade zone, give full play to the financial mechanism and function of the free trade zone, and expand the scale of people-related business in the zone. The successful implementation and orderly promotion of the financial mechanism of the National Free Trade Zone will have an important impact and promote the internationalization of the RMB.
(2) Deepen the reform of the financial system, improve the financial market mechanism and accelerate the construction of an international financial center. For a long time, China's financial system and financial mechanism have been subject to strong administrative intervention. The internationalization of RMB inevitably requires the financial supervision department to maintain the independence of supervision means according to the market mechanism. State-owned financial institutions should be de-administrative, adapt to the market and meet the requirements of international competition. Developing and cultivating competitive financial institutions and perfecting the market system and mechanism are not only necessary conditions for RMB internationalization, but also an important guarantee for the steady implementation of free exchange rate. The construction of an international financial center plays an important leading and exemplary role in the financial market trading system and market mechanism, and can play a huge gathering function. Establishing a national financial center and enhancing regional and international competitiveness will play an important role in promoting the internationalization of RMB.
(3) Cooperate to promote the gradual opening of capital account, interest rate marketization and exchange rate liberalization. The opening of the capital market, the marketization of interest rates and the complete floating of the exchange rate are the core contents of China's financial system reform and capital market opening in recent years, and they are also the key elements and foundations of RMB internationalization. Correctly grasping the speed, sequence and process of capital account opening is of great strategic significance for promoting the internationalization of RMB. The principle of capital market opening should be "first inflow and then outflow, first long-term and then short-term, first direct investment and then securities investment, first institutional investors and then individual investors". At present, the orderly opening of China's capital account is in a rare period of strategic opportunities, and China enterprises "go out" frequently, but also have a considerable scale. Abundant foreign exchange reserves and domestic excess capacity put forward realistic and objective requirements for foreign direct investment, so it is particularly urgent to speed up the gradual opening of capital projects. At present, although the RMB capital account is not fully convertible, the RMB has been used across borders in neighboring countries. The greater the scale of cross-border use of RMB, the smaller the risk of full convertibility of RMB under capital account. The opening of capital account needs to be coordinated with the reform of interest rate and exchange rate, and the opening of capital account cannot be separated from the marketization of interest rate and the managed floating of exchange rate, which need to form a benign interactive relationship.
For a long time, China's interest rate and exchange rate changes are not mainly determined by money supply and demand and international capital flows. At present, the main factor determining China's interest rate depends on the domestic economic and financial environment, while the exchange rate changes mainly depend on China's terms of trade relative to other countries. The domestic economic and financial environment mainly includes residents' consumption and savings habits, capital use efficiency, capital supply and demand, enterprise profitability, price level and the ability of monetary authorities to regulate interest rates. The terms of trade mainly include labor cost, technical conditions, industrial structure, resource endowment and the ability of monetary authorities to regulate exchange rates.
To jointly promote the reform of capital account opening, interest rate marketization and exchange rate liberalization, we must first improve the domestic and international coordination of financial policies, secondly build a good domestic economic and financial environment, thirdly adjust the economic structure, optimize the foreign trade structure, change the production mode of low-end value chain and processing trade, and gradually turn to exporting intermediate products and high value-added end products, and import products that extend the value of product chain.
(4) Further expand the scope and scale of bilateral local currency swap. Based on East Asian monetary cooperation, the process of promoting RMB internationalization in international monetary cooperation is also the process of foreign monetary and financial cooperation. As mentioned above, since 200 1, China has signed a large number of bilateral local currency swap agreements with neighboring countries and countries with close economic and trade relations, especially with East Asian countries. China signed a free trade area agreement with ASEAN countries in 2002, and 20 10 was officially launched. At present, China-Japan-ROK FTA negotiations are at a critical stage, and it is expected that an agreement will be reached in recent years. On this favorable basis, China should actively promote the scale of RMB trade settlement with East Asian countries, fully consolidate the achievements of currency swap and the foundation of foreign exchange reserve construction under the framework of the original CMI (Chiang Mai Agreement) in recent years, and continue to improve it.
The promotion of RMB's influence in East Asian monetary cooperation is not only conducive to expanding the credit of RMB in East Asian countries, especially ASEAN countries, expanding the circulation and use of RMB in neighboring countries, and gradually becoming the foreign exchange reserve currency of neighboring countries. It is also bound to gradually impact the long-standing inherent pattern of "East Asian dollar system" and gradually affect the developed capital markets in Europe and America.
In short, after years of reform and opening up, with the achievements of China's economic development and the rapid improvement of its comprehensive national strength, the pace of RMB internationalization has taken off, and the current economic and political environment at home and abroad provides the most favorable conditions for RMB internationalization. At this stage, we should seize the rare opportunity, formulate and take effective measures to promote the rapid development of RMB internationalization, and it is not far away for RMB to become an international currency.