01 Viewpoint
At the beginning of last week, Beijing held the 2020 Caixin Summer Summit. When attending the speech, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, proposed the process of fully accelerating the internationalization of the RMB.The internationalization of RMB in 2009 has first launched cross -border trade with RMB settlement as the starting point for 11 years. It is not a fresh plan.chew.This implies that China and the United States have a fierce wrestling, and under the rapid changes in the global economy, China and the United States will open a new currency war in the international status of the US dollar and RMB.
In terms of the current international financial situation, although the progress of the RMB internationalization has achieved a bit of results, there is still a long way to be satisfied and let go.Although the transaction volume of the renminbi has been growing, it ranks sixth in international transactions, but the actual portion of the actual portion cannot be considered as much.According to data from the Bank of China Financial Telecommunications Association (SWIFT), in the international transaction in May this year, RMB only accounted for 1.66%to 1.79%, and there was still the first and second US dollars (40.88%) and euro (32.91%).Large gap.As for reserve currency, the proportion of RMB is not much better.
The internationalization of the renminbi has been proposed for many years, and Fang Xinghai mentioned it again at this time.However, if you carefully study the three reasons he proposed, it is not difficult to find that China now emphasizes the internationalization of the RMB, which is closely related to the current Sino -US wrestling and the world economic situation.Fang Xinghai's first reason is that Chinese officials and folks hold a large number of US dollar assets overseas. Under the current monetary policy of the Federal Reserve, US dollar assets have great uncertainty.The second is that China's financial development is affected by the global monetary and financial system. With the current monetary policy guidance of the Federal Reserve, the global financial system is facing a great crisis and uncertainty.The third is that the US dollar payment system is safe.
U.S. Unlimited Wide
Of the three reasons, Fang Xinghai mentioned the current Monetary policy of the Fed twice, which is worth noting.The so -called Fed's current monetary policy undoubtedly refers to the unlimited wide monetary policy launched by the Federal Reserve to save the US economy.Of course, unlimited wide -printed silver paper can alleviate the dilemma of the US economy, but it is not expensive.The US dollar is the world's most universal reserve currency. The currency depreciation effect generated by the width of the United States will depreciate the central bank's assets in other countries, and the disguise will promote them to buy more US Treasury bonds from the United States.Based on the global hegemony status of the Federal Reserve, pushing irresponsibility to other people facing the problem faced by the US dollar is perfectly interpreted by our currency, but it is also your problemIs your problem).The US -wide policy is shaken by US dollar assets such as Treasury bonds has always been an irreplaceable position.
Fang Xinghai, as the official representative of China, emphasized the uncertainty of the current Monetary policy of the Federal Reserve, is undoubtedly a warning.The uncontrollable US dollar, and American self -ist behavior, are all promoting the world's absence of the US dollar.China ’s dissatisfaction expressed by Fang Xinghai’ s speech is likely to be presented by continuous reduction of US debt and accelerated RMB payment.In fact, the latest official data of the United States reflects that the major U.S. debt holdings have a tendency to sell U.S. debt. Overseas holding US debt in March and April has decreased by nearly 470 billion U.S. dollars, accounting for overall overseas holdings.7%.Even the Bank of Japan, who has always been a long -term supporter of the US debt, reduced its holdings of US Treasury bonds in April.Even though US financial officials have always emphasized that there are no shortage of US debt buyers, it seems that fewer and fewer countries are willing to pay for the United States. In the end, many U.S. debts have to rely on the Federal Reserve to buy digestion by themselves.This is why the Fed Chairman Powell also said that the current monetary policy cannot last.
In addition to the torrent of the United States, China and the United States have also made China have to strengthen the progress of RMB internationalization.In recent years, the United States has continuously used the US dollar financial status to use various economic sanctions to fight against China.Fang Xinghai mentioned the security concern of the US dollar payment system at the third point. Of course, it does not refer to the security in the general sense, but that China has long relying on the US dollar transactions to make the United States suppress China's national security issues.The internationalization of RMB has become a good way to get rid of various economic sanctions threats in the United States. It is related to the development of the National Games and has considerable urgency.As Fang Xinghai supplemented, we also had to prevent it early and make true preparations, not just mentally prepared preparations.In recent years, China has actively studied Digital RMB and began sealing and testing in specific areas nationwide at the end of April. It can undoubtedly be regarded as a breakthrough in active development of RMB internationalization.It can be expected that the next key battlefield of China and the United States will be the wrestling of currency.
