China can enter into SDR? difficult!

SDR This word is very hot in China, even those of us who knew injection molder, the recent G20 summit, Xi also specifically mentioned the SDR, he IMF is SDR included IMF package for the Renminbi welcomed. It is generally estimated that at the end of this year will be the inclusion of the RMB IMF SDR.

China RMB

   So, SDR is what exactly? Literally, it is a Special Drawing Right, a unit of account.

   As we all know, used to have a Bretton Woods system, the dollar and gold are based on the gold exchange standard, the dollar pegged to gold, the currency of another IMF member countries maintain a fixed exchange rate with the US dollar, which is the US dollar as the national currency anchor. Anchor tie in the sea, the boat would not looked out of the dollar as an anchor, other currencies would not have too much volatility. However, when the economic crisis after the United States itself, the Americans abandon gold convertibility of the dollar obligations, the anchor is not unreliable.

   So we have expectations of the IMF this SDR, SDR has called into paper gold. SDR value of the dollar now, the euro, current exchange rate to a basket of currencies the pound and yen currency posed four determined, if the yuan to join SDR, has become the fifth currency basket.

   What are the benefits of this? Benefit more, IMF hundred seven or ten Member States, each of SDR can be used to trade between these countries journal, SDR became a hard currency, the yuan into the SDR basket is equivalent hard currency became the quasi This is an important step towards the RMB international circulation.

   SDR can promote the internationalization of the RMB, but adding SDR is very hard, it has two preconditions: First, trade in this country must be in the top four in the world, the Chinese no problem; second, the currency of this country must be free use of the world, and the international community has been that the yuan is not freely circulate, this Yinggang Gang would not reach.

   So China through what work it? And national recognition technique is money, money as the other reserve currency, with many countries we have such a contract, to a certain extent to achieve the freedom to use. The liberal use of course there are two concepts, one condition is that both sides are not denominated in RMB, RMB-denominated trade much, and the other conditions are not freely traded on international markets, especially those with no long-term futures Variety.

   Understand these two points, you will know why this summer, once the yuan depreciated flash, flash demoted is to create a condition of full compliance with the SDR, because some people think that the yuan central parity with the final transaction price is still lagging behind, the central parity offset, The central bank essentially banished by flash let's settlement price with parity agreement.

   What requirements are free to use the currency? Also requested market is free, the government no administrative intervention. Make this point, it is generally clear, "Why the Chinese government in July after IMF bailout stock market responded very strongly" the. In other words, they believe that contrary to the principle of entering a SDR, is the market has been dominated administration.

   So, this is why we are leaders in various international forums have made important reason to explain. During the past 50 days, the study has been five times to talk about the stock market greatly, essentially the same tone, the bailout is international practice, nor is it a long-term behavior, in order to avoid a systemic financial crisis, and now China's market in gradual recovery of self-running capabilities. This is a basic tone, with SDR indeed related.

   Over the past two months, we have a lot to worry about, it is that the Chinese government can not simultaneously fight two wars in the two markets, a stock market battle, a battle of the RMB. Ultimate focus is on the intersection of SDR, and now it seems, the issue has been largely resolved.

   Of course, there will be a lot of misunderstanding, some people say is not mean I can hold renminbi freely spend abroad, is not what I buy things on the Internet scouring the sea can be settled in RMB? In fact, things are not so simple. RMB into the SDR is an important step in the internationalization, the yuan freely convertible but the distance is still a certain distance, calm estimate it will need five years to 10 years.

   Therefore, the RMB into the SDR to the lives of ordinary people have little effect, the advantage is to help raise the prestige of the RMB, the yuan more strong, more and more wide scope, the Chinese economy's influence on the world economy is also growing, becoming China a symbol of national prosperity.

   What is the dollar? Dollar can everywhere, this is the dollar. RMB have become hard currency, but also ultimately convertible, but also all over the .

 Cnmoulding-Plastic Injection molding company, we only trust Dollar will up.