Analysis Of The "High Line" Of Currency Swap

The direct expression of "P > < a href=" //www.sjfzxm.com/news/index_cj.asp "> capital account /a > limited openness is that the domestic RMB can not flow through capital account to the offshore market in large scale, and the channels for overseas RMB investment to return to the domestic market are also restricted.

There is no doubt that this will affect the degree of acceptance of RMB as an international currency.

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P, however, the central bank also seems to be interested in strengthening the acceptance of RMB by means of currency swap.

In October last year, the people's Bank of China and the European Central Bank signed a bilateral currency swap agreement with a scale of 350 billion yuan /450 billion euros.

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P, a German local scholar, commented that this reflects the growing reality of bilateral trade and China's initiatives to promote greater flexibility in exchange rates.

China is becoming more and more integrated into the global a href= "//www.sjfzxm.com/news/index_cj.asp" > financial market < /a >. This currency swap agreement is only part of its initiatives, but it provides support for the use of RMB overseas.

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< p > although the currency swap agreement is more like a "reserve measure", the "marriage" between the euro and the renminbi shows that the latter's international status has improved significantly, and the ECB is also interested in strengthening ties with the renminbi.

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< p > in fact, in 2013 alone, the people's Bank of China signed bilateral currency swap agreements with 5 foreign currency authorities such as the European Central Bank and England bank. The total size of the new signing agreement is 752 billion yuan.

Before that, the central bank has signed bilateral currency swap agreements with central banks or monetary authorities of many countries such as Korea, Malaysia, Argentina, Iceland, Singapore, Indonesia and the United Arab Emirates since the end of 2008.

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"P" the deputy director of the Financial Research Institute of the State Council Development Research Center, Ba Shu song, believes that through signing the local currency < a href= "//www.sjfzxm.com/news/index_cj.asp" > swap agreement < /a >, the RMB can enter the financial system of these economies through official channels, and promote the improvement of the settlement and circulation efficiency of the RMB.

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< p > in fact, signing a currency swap agreement can not only meet the needs of investment and financing pactions, but also play a role in reserve currency.

After all, the size of each currency swap agreement is not necessarily proportional to the trade situation between the country and China. In some ways, it shows that currency swap is not just for RMB trade settlement.

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According to the data provided by the central bank, in 2013, under the bilateral currency swap agreement signed by the people's Bank of China and the foreign currency authorities, the foreign currency authorities launched a total paction of 1 trillion and 30 billion yuan RMB in P.

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< p > but even so, there is still a long way to go for the RMB to become the reserve currency of value in the world.

At present, the proportion of RMB in international foreign exchange reserves is still very low.

In the future, only when RMB is widely used in international trade settlement and international financial market pactions, and the currency is relatively stable and relatively freely convertible, will it be widely accepted by many countries as foreign exchange reserve currency and eventually become an important component of international foreign exchange reserves.

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