Chinanews client, Beijing, October 17 (Peng Jingru, Cheng Chunyu and Li Jinlei) Recently, the RMB has appreciated rapidly against the US dollar, attracting global attention.

Is RMB appreciation a good thing or a bad thing for China?

Will it affect the international status of the RMB?

  Tan Yaling, dean and chief economist of the China Institute of Foreign Exchange Investment, said in an exclusive interview with China News Agency that the international status of the renminbi firstly occupied the world in terms of credibility.

The renminbi is still a non-freely convertible currency, and it has been integrated into the SDR (Special Drawing Rights) under the premise of not being freely convertible. This is a world initiative.

This has a lot to do with the contribution made by China and the relatively high level of credibility.

Tan Yaling, president and chief economist of the China Institute of Foreign Exchange Investment, accepted an exclusive interview with China News Agency "China Focus Face to Face" to analyze the recent sharp appreciation of the RMB.

Photo by China News Agency reporter Zhang Xinglong

  SDR is a book asset distributed by the International Monetary Fund based on the shares subscribed by member states and can be used to repay the debt of the IMF and make up for the balance of payments deficit between the governments of member states.

  According to the "Renminbi Internationalization Report 2020" released by the People's Bank of China, in 2019, the RMB ranked fifth among the currency composition of reserve assets held by IMF member countries, with a market share of 1.95%, compared with the newly added RMB in 2016 The SDR basket increased by 0.88%; RMB's market share in global foreign exchange transactions was 4.3%, an increase of 0.3% from 2016; RMB ranked fifth among major international payment currencies, with a market share of 1.76%.

  According to a market survey conducted by the People’s Bank of China on the use of renminbi by more than 3,300 domestic and foreign industrial and commercial enterprises and financial institutions, in 2019, about 69% of surveyed overseas industrial and commercial enterprises intend to use the renminbi or further increase the proportion of renminbi use. Than close to the highest level in history.

  "But from the perspective of China's currency function, we should not compare with major developed countries. We must have an accurate judgment on our currency positioning." Tan Yaling said that there is still a long way to go from developing countries to developed countries. distant.

At the same time, to change from a non-freely convertible currency to a freely convertible currency, market value, market system, and market structure, including the knowledge and skills of market participants and international standards, are all facing eager learning, supplementation and improvement.

  "Although appreciation may be beneficial to the status and image of the renminbi, the negative effects of appreciation on the national economy and wealth loss and suppression are also worthy of attention." Tan Yaling said.

  In addition, when talking about the recent digital renminbi red envelopes, Tan Yaling said that digitization may speed up the process of renminbi internationalization. This may be a path and a method, but we should strengthen the real internationalization of the renminbi.

"The advancement of digital currency may be an aid to the internationalization of the renminbi, but it cannot replace the internationalization of the renminbi. Therefore, the development of digital renminbi must maintain a rhythm and maintain a rationality. The ultimate goal of renminbi internationalization is the free convertibility of the renminbi. "(Finish)