Experts: The Silk Road Economy Is Expected To Accelerate The Internationalization Of RMB.

< p > > deputy director of the International Monetary Research Institute of Renmin University of China, < a href= "//www.sjfzxm.com/news/index_cj.asp" > Tu Yonghong < /a >, said recently that the construction of the Silk Road Economic Belt will bring opportunities for RMB internationalization to trade pricing settlement, project financing and direct investment, currency swap and RMB Offshore market construction.

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< p > in the twelfth issue of "the biweekly forum of International Monetary Research Institute of Renmin University of China" in 2014, Tu Yonghong proposed that, with the construction of the Silk Road Economic Belt as an opportunity, there might be two breakthroughs in the internationalization of the RMB: first, actively promote energy pricing in Renminbi; second, expand China's investment and loan share in the Silk Road Economic Belt.

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< p > if the two breakthroughs can be steadily promoted, the internationalization of RMB may come out of East Asia and Southeast Asia, or will become a major currency in the Asian region.

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< p > Tu Yonghong believes that in terms of energy trade pricing and settlement, the US dollar depreciates due to the implementation of quantitative easing policy in the United States. For other countries in the Silk Road Economic Belt, it is very unfavorable for China to trade with the US dollar, while the use of RMB is equivalent to the use of hard currency to increase its purchasing power. For China, the use of "a href=" //www.sjfzxm.com/news/index_cj.asp "RMB" /a "valuation and settlement can avoid the risk of exchange rate fluctuations.

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At the same time, China can launch major support projects to < a href= "//www.sjfzxm.com/news/index_cj.asp" > the Silk Road < /a > economic belt countries and regions, provide RMB financing, and promote RMB to flow overseas. "P"

Tu Yonghong believes that the major support projects actually contain two layers of meaning: one is the infrastructure; the two is the livelihood project; in these two areas, China has a relative advantage.

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< p > related links: < /p >

From P, policy makers, including the people's Bank of China and the State Administration of foreign exchange, have highlighted the negative impact of excessive accumulation of foreign exchange reserves in recent years.

Premier Li Keqiang said at the beginning of this month that the high level of foreign exchange reserves has become a heavy burden on China. This is the first time that senior Chinese leaders have explicitly talked about the cost of foreign exchange reserves.

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< p > this means that the policy attitude towards capital inflow will change: there is asymmetric preference in the past, but at present the preference has been balanced.

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The dynamic change of RMB in the past 3 months seems to have had some impact on capital flows in the past 3 months.

In fact, our estimates show that the "hot money" movement has shifted to outflow of $8 billion 200 million in April, while in February, the peak of recent inflows reached US $35 billion 400 million.

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The change of "hot money" in recent years has been partly attributed to the growth of foreign exchange deposits in Chinese companies, which increased by US $51 billion 500 million in the first 4 months of this year, much higher than the US $27 billion 200 million growth in 2013.

On the whole, because of the new trend of RMB since February, the market's expectation of unilateral appreciation of RMB seems to have subsided.

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