Chinanews.com, July 7 (Zhongxin Finance, Gong Hongyu) "At the end of 23, the RMB has become the third largest international currency, and the level of internationalization has generally shown a long-term growth trend. Chen Yulu, president of Nankai University, said at the "2022 International Monetary Forum and RMB Internationalization Report 2023" press conference held recently.
Chen Yulu, president of Nankai University, spoke at the scene. Photo courtesy
The forum was hosted by the School of Finance of Chinese Minmin University and the School of Finance of Nankai University, organized by the International Monetary Institute (IMI) of Chinese Minmin University, co-organized by Bank of Beijing, and specially supported by Chongyang Investment Education Fund.
The RMB Internationalization Report 2023 released at the forum pointed out that the international use of RMB has remained at a historical high, the upward trend of fluctuations remains unchanged, and there is great potential for future development. By the end of 2022, the RMB internationalization index RII compiled by the Institute of International Monetary Research of Chinese University reached 6.40, an increase of 18.08% over the previous year, continuing to maintain a long-term upward trend.
Dai Xianglong, former governor of People's Bank of China, said in his keynote speech that the growth rate of the renminbi's internationalization index has risen rapidly in the past five years, while the growth of the internationalization index of the yen and the pound sterling is basically on the defensive. At present, the international influence of the renminbi is not lower than that of the yen and the pound sterling
Dai Xianglong, former president of People's Bank of China, spoke at the scene. Photo courtesy
Promoting the internationalization of the RMB has both internal and external significance. Dai Xianglong said: For five consecutive years, China has maintained its position as the world's largest country trading in goods, and its foreign direct investment ranks second and third in the world; if these huge revenues and payments are mainly settled in US dollars, it will certainly increase the cost of currency exchange and exchange rate risks, and will also be constrained by the major international currency issuers. The internationalization of the renminbi can significantly eliminate the above risks.
Chen Yulu pointed out that global challenges such as the epidemic and geopolitical conflicts have further intensified the problem of the international money supply gap. The internationalization of RMB provides emerging market and developing economies with new options for international payment currencies and reserve currencies, and promotes the international monetary pattern towards the direction of diversified competition and mutual checks and balances, increasing the stability of the world economy.
However, Dai Xianglong also mentioned that the internationalization of the renminbi is not an initiative to challenge the dollar, let alone replace the dollar. It is one-sided to describe some countries' announcement of abandonment or reduction of dependence on the US dollar as a global "de-dollarization." We have always adhered to a low-key and prudent attitude towards the internationalization of the renminbi.
In the future, how to further expand the international influence of RMB? Dai Xianglong said that the internationalization of the renminbi is still facing various challenges. It is necessary to promote the internationalization of the RMB in an orderly manner and strive to achieve the influence of RMB internationalization close to the level of the euro by 2035.
Chen Yulu believes that in 2035, whether the RMB can be equal to the US dollar and the euro requires the construction of three major conditions: first, the construction of China's modern industrial system supported by the real economy must be basically completed; Second, the deepening of China's financial market and the infrastructure construction of RMB internationalization should make great progress; Third, a high-level balance should be achieved between the institutional openness of China's financial system and the risk control system.
Peng Wensheng, Chief Economist of CICC and President of CICC Research Institute, delivered a speech at the scene. Photo courtesy
Peng Wensheng, chief economist of CICC and president of CICC Research Institute, mentioned that to promote the internationalization of RMB, more attention should be paid to the competitiveness of the real economy and scientific and technological innovation, and the partnership of trade and physical investment should be used as the starting point to promote cooperation between China and other countries in the field of payment and finance. (End)