RMB internationalization quietly into conflict
The world today, among the economic game is like a war of no smoke.
Those who fight, there must be &quot;exact odd wins,&quot; the actual
situation of the Road. Therefore, &quot;The Art of War&quot; goes:
&quot;those who attack and will take, they do not keep too attack. Shou and who
will be solid, keep it not too offensive.&quot;
In July most of the time, the market&#39;s attention has been drawn to two
things, on: First, China in the first half economic data released, the second is the
aftermath of the ensuing decision-making right in the second half set the tone for
macroeconomic policy. After that, both these issues are not pleasant surprise.
But in another war, China has made rapid progress, which is RMB
internationalization. In July, the Chinese government at least five major movements
First, the RMB exchange an agreement for the next city. July 23, the central bank
announced that it has signed with the Monetary Authority of Singapore 150 billion
yuan (/ S about 300 million) of bilateral currency swaps. This period also came from
South Korea, local media sources, the South Korean government is considering an
indefinite period with the Chinese currency swap agreement entered into the program.
Second, Hong Kong &quot;offshore yuan market,&quot; the building of
new breakthroughs. July 19, the Mainland and Hong Kong signed a revised
&quot;Bank of renminbi business in Hong Kong, the settlement
agreement&quot; with the expansion of the yuan trade settlement supplementary
memorandum of cooperation. Under the agreement, Hong Kong banks to open RMB
accounts for financial institutions and providing services is no longer restricted, and
among individuals and enterprises can freely through the banking payments and
transfers of RMB funds.
Third, foreign exchange reserves to adjust speed. In short, China&#39;s foreign
reserve adjustment reflects the recent &quot;one by two-by&quot; reducing
the U.S. debt, increasing debt and the date the debt is in Europe.
Fourth, China is expected to expand the foreign exchange market trading products.
Dow Jones disclosed that China is considering allowing the Malaysian ringgit in the
first domestic currency transactions in order to promote the expansion of the scope of
cross-border trade settlement of RMB plans.
Fifth, the five-year term of the accused expected the national financial work
conference held later this year two years in advance.
Above each of these events out of view, not a small event, on usually will lead to the
so-called mainstream circles of Western criticism, and China will be cautious to do
these things at different times or without saying anything. Today, China is almost the
same time these front breakthrough, which revealed two important messages:
First, China has invested RMB internationalization &quot;war power&quot;
than the previous assessment of the people of China in July of action, that China has
had the same time on many fronts to promote the ability of RMB internationalization.
Second, China&#39;s such a positive attitude that has entered the RMB
internationalization &quot;accelerated phase&quot;, walking from the small
step turning at full speed, and in July of these actions can be regarded to some extent
the build number of RMB internationalization.
If so, it shows that China has made good preparations to meet the sudden acceleration
of RMB internationalization may bring challenges to prepare.
In our view, China has accelerated internationalization of RMB reveal the intention of
the early recovery of the world economy was accelerating the internationalization of
RMB as strategic opportunities. To arrange, China will achieve &quot;external
storage relocation within the domestic debt with a +&quot; of the twin objectives
of the yuan has shown signs prototype circular chain.