(Focus on Boao) Boao Conference of 100: Zhou Xiaochuan said that the choice of RMB or USD should be decided by the market

　　China News Service, Boao, April 21 (Liu Liang and Pang Wuji) Zhou Xiaochuan, vice chairman of the Boao Forum for Asia and former governor of the Central Bank of China, said at the Boao Forum for Asia 2021 annual meeting on the 21st that in recent years, the internationalization of the RMB has been increasingly affected. attention.

Regardless of which international currency is chosen, “whether people accept it or not, whether they are willing to use it or not, is the independent decision of the market participants, and it cannot be decided unilaterally.”

　　He analyzed that if everyone likes the US dollar, and the US dollar itself can maintain its advantages, there will be relatively more people who choose the US dollar.

On the contrary, if there is a financial crisis in the United States or imposing sanctions through the U.S. dollar, the market will be more cautious in choosing the U.S. dollar and favor other currencies instead.

　　"For at least the next few decades, various market participants around the world will compare different currencies and then make their best choices." He said.

　　Zhou Xiaochuan believes that the market's choice of a country's currency reflects to a certain extent the comprehensive economic strength of the country behind the currency.

Take the RMB as an example. What the market values ​​is China's economic and financial system behind the RMB, as well as the stability, convertibility, and free use of the currency.

　　He emphasized that the internationalization of the renminbi should be a gradual process. On the one hand, it is necessary to gradually improve the reputation and free use of the renminbi, and improve the financial infrastructure, including cross-border payment systems, cross-border communications, etc.; on the other hand, does the renminbi have Functions such as normal deposits or value preservation and appreciation are also part of the attractiveness of currencies.

　　In his view, a prominent advantage of the renminbi is that China is the world's second largest economy. Not only does trade and modern service industries develop well, but it also has a large outbound tourism consumer group. Therefore, many countries attach great importance to Chinese consumers. A driving factor to promote the internationalization of the RMB.

　　Zhou Xiaochuan also said frankly that compared with the U.S. dollar, the development history of the renminbi is relatively short, and there is a certain gap in the degree of free use, "but we are also constantly improving the degree of free use of the renminbi." As China's economic and trade status continue to improve, the currency The status of will rise naturally.

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