Has the internationalization process of RMB made a big breakthrough?
Recently, The central bank released a "2022 RMB Internationalization Report" . The report shows that the amount of RMB international payment continues to grow, and surpasses the yen and becomes the fourth largest payment currency in the world, setting a record high.
Central Bank releases the 2022 RMB internationalization report
Many people say that the internationalization of the RMB has finally ushered in a big breakthrough, and China is winning. This sentence is correct, but it is not entirely true. The internationalization of the RMB has always been an important strategy for us to prevent the US dollar from harvesting and establish China's currency security. has indeed achieved certain results this time. , but have we really "winned"?
Today I will talk about the internationalization of the RMB. It is not easy to write. Your likes, followers and forwarding are my motivation for updating!
The internationalization of the RMB has accelerated and has become the fourth largest payment currency
First of all, I would like to ask you a question, Why do we want to "internationalize" the RMB?
After in World War II, Western countries led by the United States held a meeting together and formed the " Blintton Woods System". During this stage, the US dollar was linked to gold. The United States is the well-deserved world overlord. No one dares to refuse to obey if he commands the world.
But as time goes by, the United States' national strength declines, The United States is unable to maintain the status of US dollar = gold . But despite this, international trade still needs a currency to settle. On this basis, most countries choose to "peer" the US dollar with their own currency. In order to better trade, these countries buy large amounts of foreign exchange reserves denominated in US dollars.
Nixon signed, Blintton Woods system announced its collapse
The world is using the US dollar, which is the basis of "dollar hegemony", so the policy of the Federal Reserve can influence all countries and even harvest the world. Later, the United States and Saudi reached an agreement to link the US dollar to oil, which further intensified the influence of the hegemony of the US dollar. Later generations called it US dollars of oil.
In the following decades, the United States used the hegemony of the dollar to repeatedly harvest the world. From the global financial crisis caused by the subprime mortgage crisis in 2008 and the collapse of trade in Southeast Asia, to the debt crisis in Latin America, countries around the world deeply realized the potential threat posed by the hegemony of the dollar to the national economy. How to curb the hegemony of the US dollar? There is only one way, we can make an "international currency" ourselves, and then use this currency to trade with other countries.
This is the idea of internationalization of the RMB. There are only a few economies in the world that have the ability to realize this wish. How to internationalize RMB
?
The internationalization of the RMB is not a cover, nor should it be a political achievement. Therefore, it is designed for our economy and trade services. To completely open up this channel, needs to be designed from three aspects: clearing, circulation, and reserve currency.
1, first of all, circulate
. If the RMB wants to be circulated, it is necessary to set up points at home and abroad so that domestic and foreign users can freely exchange and trade RMB. , so Chinese banks have gone overseas and set up their own service points in the capitals of various countries.
In 2016, Bank of China moved its headquarters to Manhattan
We have many people in China who have foreign currency cards and VISA cards. Now, RMB-based credit and debit cards have been issued abroad, and even cash is used on a small scale. is a circulation.
Not only that, with the strengthening of China's comprehensive national strength, we do business with Russia, Iran, , Saudi Arabia and other countries, and have also started trading directly in RMB.
Moscow Exchange
For example, in the Moscow Exchange in Russia, the daily delivery volume of the RMB has reached 29.3 billion rubles , exceeding the US dollar , This means that the circulation status of the RMB in Russia has exceeded the US dollar.
2, the liquidation method
involves exchange rate and trade issues. One step that cannot avoid is liquidation.
In the economic system led by the United States, there is an institution called SWIFT. This institution is " International Fund Clearing System " , which provides an effective guarantee for the settlement and clearing of funds around the world, allowing international trade to proceed smoothly. If a country does not enter the SWIFT system, it will be almost impossible to conduct international trade.
SWIFT is controlled by the United States
, but this system is actually controlled by the United States. So after the conflict between Russia and Ukraine, when the United States moved its mouse, Russia was removed from the SWIFT system , so Russia's foreign trade basically collapsed , so this is also called a "financial nuclear bomb".
Then if the RMB wants to be internationalized like the US dollar, it must have its own settlement system. In order not to be choked, we have also created a similar settlement system called CIPS, which is the main channel for cross-border payment and clearing of RMB.
China CIPS system, the killer of SWIFT system
CIPS The main purpose of CIPS is also very simple. If China encounters the same situation as Russia and is removed from the SWIFT system, then China's economy will collapse directly because our exports will soon plummet by 90%. When enterprises go bankrupt, people's unemployment will increase significantly.
But with CIPS, we can bypass the legal sanctions of the United States through SWIFT to a certain extent, protect the security of the RMB and trade, and get rid of its dependence on the US dollar.
Of course, CIPS has been established, but there is still a big gap compared with SWIFT. , so we will continue to promote the construction of CIPS so that more countries that do business with China can access the CIPS settlement system.
3, reserve currency
Before we said that the US dollar is the strongest currency in the world. Under the premise that the United States is endorsed by the world's first comprehensive national strength, countries around the world have chosen to buy US dollars as reserve currency and trade and settle with US dollars.
So an important part of breaking the hegemony of the US dollar, is to convince other countries in the world to use the RMB as a reserve currency. We have also achieved positive results in this regard.
For example, according to the "Official Foreign Exchange Reserve Constitution" data of the International Monetary Fund IMF, in the first quarter of 2022, the RMB ranked fifth in the global foreign exchange reserves. It reached 2.88%, an increase of 1.8% from 6 years ago.
IMF's share of world reserve currencies has been ranked fifth and worth celebrating, but our road is still far. Although our road is far, as long as we do it, I believe that in 10 and 20 years, 2.88 may become 12.88%, 22.88%, or even 32.88% . By that time, the US dollar will basically not be able to harvest us.
summary
Recently, the RMB exchange rate depreciated a little quickly. At the beginning of this year, from 6.3: depreciation to 7.2 yesterday, The wealth of the Chinese people has shrunk significantly in the US dollar.
The harm brought by the United States is what we need to avoid in the long run. Therefore, the more critical the moment, the more we must adhere to the internationalization of the RMB and unswervingly promote the international influence of the RMB in three aspects: circulation, clearing and reserve currencies.
insists on promoting the internationalization of the RMB
Of course, the basis for doing these three aspects is our onshore finance and the basic domestic economic situation. Finally, combine the two to achieve financial openness. After all, how can a country with closed finance be "internationalized"? How can a closed country fight back against the hegemony of the US dollar?
So you will see that although we have encountered many difficulties in recent years, China's pace has not stopped in the field of financial opening. We have ushered in many foreign banks and securities institutions . This is our sincerity to embrace the world and take the path of openness and development.
Finance should be open and the RMB should be internationalized!
However, in order to internationalize, do we have to give up the independence and stability of domestic policies? I think it is negative. The consequences of the rapid opening of will inevitably bring serious impacts and consequences. Therefore, we must open up, but the premise is to maintain the stability of the domestic economy.
So, of course, the RMB must continue to take the internationalization path in the future. This is to ensure that China will not be harvested by the hegemony of the US dollar in the future, but our opening speed can be adjusted at any time. If the economy is stable, we will take a little bigger step.
When you encounter a problem, you can solve the problem first and then go on the road. After all, we cannot internationalize for the internationalization of the RMB. Everything must be served for the development of China's economy and the great rejuvenation of the Chinese nation!
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ The picture source is from the Internet, please delete if infringes.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-