This is a historic moment for RMB, and it will also be the biggest economic event in 20 15.
Wait! So mysterious, what exactly is SDR? What is the significance of RMB joining SDR? What's the impact on ordinary people like you and me? Want to know the answers to this series of questions, and then look down.
What is SDR? For example, "paper gold"
SDR was born in 1969 and was created by IMF. Its English name is SpecialDrawing Right and Chinese name is Special Drawing Right. Free use of currency quotas is a potential creditor's right of IMF members.
Don't understand? In fact, it is a supplementary international reserve asset, the accounting unit of international organizations such as IMF, also known as "paper gold".
In other words, SDR is not a power, but a reserve currency, similar to gold dollar, which can be used as a country's foreign exchange reserve.
If a country's currency becomes the constituent currency of SDR, it will be considered as the world currency with worldwide storage function. At present, the currencies in SDR basket include USD, EUR, GBP and JPY.
The International Monetary Fund evaluates the SDR currency basket every five years. Generally speaking, it will adjust the weight of currencies in the basket and consider including other currencies. So far, the only currency substitution in SDR currency basket occurred at 1999, when the German mark and French franc were replaced by the euro.
The IMF's absorption of RMB as a new member of SDR currency basket is equivalent to the international community giving RMB a "3A". Although the weight of RMB in SDR may be lower than expected, there is still a chance for RMB under the setting of five-year assessment.
What is the significance of RMB's inclusion in SDR? Value comparable to "WTO entry"
Some people may ask: SDR is invisible, intangible and inexhaustible. If RMB joins SDR, what benefits will it bring to China?
RMB joined SDR, but the IMF used the currency of an emerging economy as the reserve currency for the first time, which will greatly enhance the status of RMB in the international monetary arena, and China will gain greater voice in future world economic activities, which is of great symbolic significance.
Of course, the benefits are not only symbolic. Domestically, RMB's entry into SDR will promote domestic financial reform, China's asset prices will gradually be in line with international standards, and the asset bubble problem will be gradually solved.
Internationally speaking, joining SDR means that RMB has become a real world currency and the official currency of more than 80 member countries of the International Monetary Fund/KLOC-0, and the internationalization of RMB will go through a big hurdle.
According to some analysts, if China's entry into the WTO has promoted the rapid development of China's export-oriented economy, then joining SDR may make China finally gain a firm foothold in the international financial arena.
The Great Wall was not built in a day, and the successful inclusion of RMB in SDR is also a new beginning. Convertible and freely usable international currency is the goal of RMB in the next five years.
The central bank responded:
The People's Bank of China welcomes the decision of the Executive Board of the International Monetary Fund to include RMB in the SDR currency basket, which is an affirmation of China's economic development and achievements in reform and opening up. China appreciates the hard work of the management and staff of the International Monetary Fund in the process of reviewing the SDR, as well as the support of the vast number of member States. RMB's participation in SDR will help to enhance the representativeness and attractiveness of SDR and improve the current international monetary system, which is a win-win result for China and the world. The entry of RMB into SDR also means that the international community has more expectations for China to play an active role in the international economic and financial fields. China will unswervingly push forward the strategic deployment of comprehensively deepening reform, accelerate financial reform and opening up, and make positive contributions to promoting global economic growth, maintaining global financial stability and improving global economic governance.
How will RMB's entry into SDR affect you and me? A coin "goes to the world"
After talking for a long time, what impact does RMB joining SDR have on you and me? Prior to this, there have been concerns that the inclusion of RMB in SDR will lead to the "diving" of RMB exchange rate and RMB depreciation.
In this regard, experts said that at present, there is no sign of large-scale depreciation or continuous depreciation of the RMB. Yi Gang, deputy governor of the central bank, also said earlier this month that the RMB will remain stable at a reasonable and balanced level after being included in SDR.
In fact, the inclusion of RMB in SDR can increase the recognition and confidence of RMB in the international market, reduce the pressure of RMB depreciation, and help China people to strengthen the RMB.
Besides the exchange rate, what impact will this have on you and me? More benefits are coming, and it is no longer a dream to go to the world with one currency.
Playing abroad is more worry-free. "Go and go" tourism will no longer be a dream. Overseas travel and shopping can be settled directly in RMB, and there is no need to exchange foreign exchange, and there is no need to worry about exchange rate costs and risks.
It is more convenient to buy a house and stock abroad. Want to buy a house abroad? It can be settled directly in RMB. Want to go overseas for stock trading and financial management? Personal cross-border investment is more free and convenient.
Trade settlement is more dominant. Enterprises' import and export commodities and cross-border transaction investments can be denominated in RMB, which reduces exchange rate risks and exchange costs, and "worrying about dollar fluctuations" will become history.
Introduction to Main International
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