The rising status of the renminbi as a reserve currency shows China's economic strength and charm

　　Xinhua News Agency, Beijing, April 9

　　Xinhua News Agency reporter

　　According to the "Currency Composition of Official Foreign Exchange Reserves (COFER)" data released by the International Monetary Fund a few days ago, the proportion of RMB in COFER in the fourth quarter of 2021 hit a five-year high.

Observers believe that the continued increase in the international influence of the RMB reflects that China's economy has won more "vote of confidence" in the international community.

Economic resilience provides support for RMB internationalization

　　In recent years, with the continuous optimization of China's economic structure and regional layout, and the deepening of reform and opening up, China's economic fundamentals have continued to improve, and its development achievements have attracted worldwide attention, providing strong support for the internationalization of the RMB.

　　Last year, China's economic growth rate reached 8.1%, and the total economic volume reached 114.4 trillion yuan.

　　Gu Qingyang, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said that despite the pressure of shrinking demand, China's economy is still performing very well globally, and the internationalization of the renminbi has great potential for development.

　　Bambang Suryono, chairman of the Indonesian think tank Asian Innovation Research Center and chairman of the Indonesian ASEAN Nanyang Foundation, said that China's economy has a bright future and the renminbi will achieve a greater leap forward on the road to internationalization.

　　Ke Yang, associate professor of Chinese economics at the China Institute of King's College London, said that China's economy has developed rapidly in recent decades. As the global importance of China's economy continues to rise and the scale of China's international trade continues to expand, The importance of the renminbi will also continue to grow.

International economic and trade cooperation deepens and expands the scope of application of the renminbi

　　As China continues to integrate into the world and has become an important trading partner of many countries for several consecutive years, more and more countries have included the RMB in their foreign exchange reserves.

　　In 2021, the trade volume between China and the five Mekong countries will reach nearly 400 billion US dollars, a year-on-year increase of about 23%.

Cai Weicai, senior vice president of Thailand's Kasikorn Bank, believes that as China plays an increasingly important role in the international trading system, more countries will include the renminbi in their foreign exchange reserves to avoid unnecessary foreign exchange risks.

　　China has been the largest trading partner of Africa for 12 consecutive years. In 2021, the total bilateral trade between China and Africa will reach 254.3 billion US dollars, a year-on-year increase of 35.3%.

Humphrey Mosey, director of the Center for China Studies at the University of Dar es Salaam in Tanzania, pointed out that, driven by the Forum on China-Africa Cooperation and the Belt and Road Initiative, most African countries will conduct larger-scale trade with China and will also More use of RMB to conduct business.

　　Donald Rushabwa, a researcher at the China-Africa Economic and Cultural Exchange Research Center in Zimbabwe, said that China has signed local currency swap agreements with many African countries, and the renminbi will play a more important role in China-Africa economic and trade cooperation in the future.

Exchange rate stability and strong anti-risk ability increase the attractiveness of RMB

　　In recent years, the anti-risk capability of the RMB exchange rate has continued to increase. Under the impact of the epidemic, geopolitical conflicts and other risk factors, the RMB has remained basically stable at a reasonable and balanced level, which not only plays an important role in stabilizing the financial market, but also enhances the attractiveness of RMB assets. .

　　Gustavo Girardo, a professor at the National University of Lanus in Argentina and an expert on China, said that in the context of the current international situation full of uncertainties, China's economic development is sustainable and stable, so the international acceptance of the renminbi is also Getting higher and higher, it has become an important choice for avoiding risks.

　　Xia Huasheng, a financial expert from Brazil's Vargas Foundation, believes that China is Brazil's largest trading partner. From the perspective of diversifying foreign exchange reserves and diversifying financial risks, steadily increasing RMB foreign exchange reserves is a pragmatic measure.

　　Mohamed Elson, a Saudi economist who studies China issues, believes that the total amount of RMB assets is large and involves a wide range of industries. The allocation of RMB assets is conducive to improving the return on investment portfolios and reducing systemic risks to a certain extent.

　　Lizardo Gomez, Dean of the School of International Business at the University of Valparaiso in Chile, believes that under the current international economic situation, the RMB's ability to become an international reserve currency has been continuously enhanced.

(Participating reporters: Cao Xiaofan, Ma Zegang, Wang Yaguang, Cai Shuya, Luo Jingjing, Bian Zhuodan, Zhang Yuliang, Xie Hao, Yu Qianliang, Zheng Shibo, Zhao Xiuzhi, Yang Hairuo, Huang Zemin, Ni Ruijie, Wang Haizhou, Yin Nan, Zhang Xiaoran)