The report believes that the monetary authorities may further reduce foreign exchange intervention and expand the fluctuation range of RMB exchange rate. This means that the channel of foreign exchange as the base currency will continue to weaken. In the short term, the central bank needs to increase the money multiplier by significantly reducing the RRR. In the long term, the central bank should actively seek alternative mechanisms for money supply, especially through open market operations to increase its holdings of domestic bonds. The fluctuation of RMB exchange rate may be more affected by the balance of payments and capital flows, and the range will increase.
Being a basket of SDR currencies is of great significance to the internationalization of RMB, making RMB more in line with China's international interests and promoting the reform and equalization of the international monetary system. The promotion process itself has a far-reaching impact on China's economic and financial development. The corresponding measures will accelerate the opening of China's financial system and promote the effective allocation of resources. At the same time, it also puts forward higher requirements for the system construction and policy framework of the financial market, and financial risks may increase accordingly. If handled properly, this accelerated promotion of China's financial development and opening up is comparable to the promotion of the real economy after China's entry into WTO to some extent.