Yu Yongding RMB internationalization and liberalization of capital account kkxxse.com

Yu Yongding: RMB internationalization and capital account liberalization [Abstract] in the foreseeable future, the large-scale internationalization of the RMB is unlikely. However, China has canceled most of the capital controls, and therefore, to a certain extent and within the scope of the internationalization of the RMB is possible. The author: Yu Yongding ("the last barrier" author) and my world economic and political colleagues, the internationalization of RMB (the central bank’s official documents is the official formulation "Renminbi trade settlement") has been holding a positive attitude. What is the purpose of RMB internationalization? In a paper submitted in March 2009, we made a comprehensive exposition of the definition and theory of currency internationalization, the purpose, conditions and approaches of RMB internationalization. For us, the central bank in mind, the internationalization of the RMB may include: reduced China enterprise exchange rate risk and improve the international competitiveness, China financial institutions to reduce transaction costs and collect seigniorage (as a reserve currency) and increasing the value of foreign exchange reserves. (see the meaning and conditions of RMB internationalization). At that time, we have no direct discussion of RMB internationalization roadmap, but pointed out that "the internationalization of the currency has low inflation credibility, reasonable interest rates and exchange rates and currency trading capital fully convertible support. The RMB can become an international currency, or that the international use of the RMB can be expanded, the main determinant is China’s growing importance to the world economy. The growing size of China’s economy will be a strong support for the renminbi to play a bigger role in the world. Of course, the internationalization of the RMB should also have a more extensive and long-term goals, for example, the RMB eventually become an international reserve currency. Unfortunately, we do not see the official purpose of the internationalization of RMB clear, systematic expression. According to the general understanding of RMB internationalization goals are: to reduce the China foreign trade enterprises reduce the dollar exchange rate risk, foreign exchange reserves, reduce transaction costs and improve the competitiveness of the financial industry Chinese, make Shanghai become the center of international trade and the RMB as an international reserve currency. International currency is widely used as a means of valuation, settlement and storage of value in the international currency. In support of the internationalization of the RMB, we emphasize the relationship between RMB internationalization and liberalization of capital projects. (see "the internationalization of RMB is a gradual process of mutual contact with capital account liberalization"). Although the internationalization of a currency is not equal to the liberalization of the capital account and the free convertibility of the currency, the liberalization of the capital account and the convertibility of the currency to a certain extent are the preconditions for the internationalization of the currency. We believe that the Chinese government is not willing to give up capital controls. Thus, in the foreseeable future, the large-scale internationalization of the RMB is unlikely. However, China has canceled most of the capital controls, and therefore, to a certain extent and within the scope of the internationalization of the RMB is possible. For example, China may still need to control the residents to foreign borrowing. However, China should encourage non residents to borrow money from China, and use the renminbi. Panda Bonds is a good example. Capital controls are not complete.相关的主题文章: