Sunday, November 29, 2015

Yuan in SDR result announced today will bring good to the people

Yuan in SDR result announced today will bring good to the people?

Photo: network

On November 30, the International Monetary Fund (IMF) Yuan in the special drawing right (SDR) currency basket for a vote. Comprehensive forecasts and the IMF top position from Yuan "into the basket" SDR is the probability of the event. This will be the historic moment of the Yuan.

In 1969, the first-ever International Monetary Fund SDR (special drawing rights), which is a concept, SDR is a member in addition to "ordinary SDRs" external IMF reserve assets available to the supplement.

At present, the SDR currency basket of dollars, euros, Sterling and Yen 4 currency composition, proportion, 37.4%, 41.9% and 9.4%, respectively.

SDR currency basket review once every five years. 2010 audit of the IMF that the Yuan joined the SDR one of two conditions were met, namely currency the country's export trade volume is large enough, but finds the Yuan does not comply with other conditions, that is, money is free to use.

In order to break the IMF concerns, Sprint Yuan "into the basket", this year, the Central Bank often force, not only in the promotion of market-oriented interest rate on many occasions "sword", but also further improve the quality and transparency of China's foreign-related data.

Premier Li also publicly shouted said currency is included in the SDR basket of currencies by IMF, means the Yuan has become a true world currency, will also mark the IMF an emerging economy currencies as a reserve currency for the first time.

On November 13, the IMF Managing Director Christine Lagarde said in a statement, IMF staff assessed believes that Yuan in line with the "free use" currency requirements.

Top effort of pushing for the Renminbi to join SDR underscores its important role at all levels of society in China. According to the Thirteen Five planning are focused

Standard Chartered Bank is expected attract 40,000 yuan in the SDR for the next 5 years to 7 trillion yuan of capital into China. Moody's said China's credit rating will be positive.

In addition, the RMB "into the basket" SDR in the long run, consumers hold the Yuan outside China Tourism, shopping and investment dream, or will be achieved.

Union International last week, the latest release of the Chinese tourists outbound consumer trends 2015 report, 2015, outbound Chinese tourists spending up to 1.1 trillion yuan, one of the largest consumer is still shopping. However, outbound travel experiences on the "swap" quite a headache.

"As the Yuan joined the SDR, a growing number of countries recognized the Yuan and willing to accept renminbi, or RMB to extensively carry out transactions. View shopping abroad and tourism consumption in the future will be more convenient. "Lian ping, Chief Economist of Bank of communications recently said publicly.

Cao Fengqi, an economist said in an interview with Beijing, and has achieved full liberalization of China's current project, the rising proportion of the renminbi in international trade and capital project has not been completely liberalized.

He pointed out that overseas investments are possible from the Yuan "into the basket" benefit indirectly. This is especially important in the present context.

Premier Li said, China's overseas investment in the next five years could surpass $ 1 trillion. He said in the next few years, China's average annual economic growth of more than 6.5%, so as to create more opportunities in the world.

Yuan joined the SDR also has practical significance for foreign trade enterprises. "Renminbi-denominated import and export commodities, reducing the exchange rate risk and foreign exchange costs of enterprises, improve the efficiency of import and export enterprise. "Finance and Economics said Guo tianyong, Director of banking Research Center.

No comments:

Post a Comment