Why RMB Can Quickly Become Popular?

< p > > a href= "http:// www.sjfzxm.com/news/index_c.asp" > China Central Bank < /a > 29, announced that it has signed a memorandum of cooperation with France and Luxemburg central bank on the use of RMB for business liquidation.

Previously, the RMB clearing bank has settled in London and Frankfurt, Germany.

The signing of the agreement means that China has accelerated the pace of RMB internationalization and its layout in Europe.

The renminbi is currently the most popular, fastest growing and most potential currency.

< /p >

< p > from the June 1, 2012 a href= "http:// www.sjfzxm.com/news/index_c.asp" > RMB > /a > the direct trading of Japanese yen started. In March 19, 2014, the New Zealand dollar also announced the accession to the direct paction. In April 10, 2014, the Yuan's direct dealings with the Australian dollar were also directly opened, and then the renminbi began trading directly against the pound.

The RMB direct Club quickly absorbed 4 new members except the top dollar.

< /p >

Fredrik Erixon, director of the European Centre for international political and economic affairs, and P HubertusV th, chairman of the European Centre for international political and economic affairs, agree that the euro, the most eligible Frankfurt dollar, will soon join the renminbi club.

< /p >

Today, many cities around the world are competing for the establishment of a Renminbi trading center. According to Peng Bo, Canadian Finance Minister Joe Oliver said Canada had held talks with the Chinese government about setting up a Renminbi trading center in North America.

< /p >

< p > another Singapore has been queued.

According to the data released by SWIFT in April, the amount of Renminbi payment in Singapore increased by 375% between March 2013 and March 2014. It surpassed London and became the second largest offshore RMB settlement center in the world after Hongkong.

< /p >

P, Switzerland's banking sector, which has recently been displaced by the banking secrecy industry, of course, also sees the big fat that can help pform itself.

< /p >

< p > < strong > RMB most popular > /strong > /p >

Wang Wen, executive vice president of the Research Institute of Renmin University of China, Chongyang < a href= "http:// www.sjfzxm.com/news/index_c.asp" > Finance > /a >, analyzed that the global economic crisis led to a sluggish us real economy, which led to the continued weakening of the US dollar. The yuan came from China's "growth engine" role of the world economy and continued to be strong. The world gradually began to aspire to hold RMB. P

< /p >

< p > according to foreign media sources, the Paris Bank of France has agreed to pay a fine of $8 billion 900 million for being charged with tens of billions of dollars in financial pactions with the sanctions countries. The fine may become the largest penalty in the history of banking industry, and the faba became the second largest European bank to plead guilty to the US regulatory authorities in 2014.

< /p >

< p > industry analysts pointed out that if farba can not carry out the US dollar trading business, even temporarily, it will cause fatal damage to banks.

Once customers turn to other banks for dollar settlement, it is hard for them to turn back.

To this end, the French central bank governor Noah said publicly that French companies would directly trade with China in the euro and Yuan and stop using the US dollar.

< /p >

< p > in addition, more and more Russian enterprises are ready to switch to Renminbi or other Asian currencies to sign commercial agreements because they are afraid that the US and Europe will impose sanctions on Russia and even drive them out of the US dollar market.

< /p >

< p > these two seemingly seemingly independent events, all of which point to the internationalization of the renminbi.

Xiao Yuan, head of a printing company in Dongguan, told the "China Times" reporter that the RMB settlement is of great benefit to Chinese enterprises, and at least no longer has to bear the loss of exchange.

Recently, a Russian customer meeting with Mr. Xiao has suggested that future trade may be settled in Renminbi.

< /p >

Gene Quinto, deputy governor of Philippines central bank, pointed out that RMB internationalization will benefit the global financial market, increase trade and financial pactions, and promote global and regional economic growth.

The Central Bank of Philippines agrees that RMB internationalization is the trend of the times. It has included RMB in one of the 18 convertible currencies of the Philippines central bank. It aims to encourage Philippines's banks to directly convert their customers' Renminbi into Philippines pesos and facilitate financial pactions.

< /p >

< p > many local banks in Philippines have already started Renminbi deposit business, and the Manila branch of Bank of China has signed a cooperation agreement on RMB business with 14 large local commercial banks in Philippines.

< /p >

< p > < strong > RMB "the fastest progress" < /strong > /p >

In the short span of five years, the RMB has been able to trade with the US dollar, euro, yen, Hong Kong dollar and other 10 foreign currencies, and cross-border trade settlement has entered "almost all countries and regions". P

By the end of 2013, the RMB has become the eighth largest payment currency and the second largest trade financing currency in the world. The annual RMB clearing trade in cross-border trade totaled 4 trillion and 630 billion yuan, an increase of 57% over the same period last year.

At present, the PBC has signed bilateral currency swap agreements with 29 overseas countries and regions, with a total scale of 2 trillion and 220 billion yuan.

< /p >

< p > according to the Research Report on the dynamics and outlook of RMB internationalization released last week by Chongyang Finance Research Institute of Renmin University of China, in 2014, the US dollar index of internationalization is 54.69, the euro is 24.13, the yen and the pound are 4.50 and 4.19 respectively, and the internationalization index of RMB will climb to 1.88 by the end of 2014.

From the current speed, it is entirely possible to exceed Japanese yen and pound sterling in two or three years.

< /p >

< p > now the RMB has become the eighth largest payment currency and the second largest trade financing currency in the world.

In 2013, the RMB settlement business of cross-border trade totaled 4 trillion and 630 billion yuan, an increase of 57% over the same period last year.

The proportion of RMB foreign exchange pactions in the world has increased from seventeenth in 2010 to ninth in 2013, and RMB trade settlement has exceeded 16%, and the ratio of import and export has been balanced to 2.2 times from 10 times in 2010.

< /p >

< p > < strong > RMB has the most potential < /strong > < /p >.

< p > from the perspective of asset management, it constitutes the relationship between the head office and the branch.

From a micro perspective, Singapore and Hongkong are actually the Asian sectors of large financial institutions in Europe. Their functions are distributed by European headquarters. On the macro level, Asian and European financial centres form synergy because of their different functions.

< /p >

< p > however, the US dollar accounts for nearly 7 of the total international trade, and foreign exchange and international reserves account for 4.

Compared with the total volume of China's import and export trade of more than 4 trillion US dollars, the total volume of RMB 2 trillion and 220 billion yuan is very small.

< /p >

At the end of 2013, the central banks of the United States, Europe, Britain, Japan, Canada and other countries almost simultaneously announced a long, unlimited multilateral currency swap agreement, which was equivalent to the strict defence of the independence of the US dollar in the international monetary system.

< /p >

Less than P, analysts say that from the perspective of several European cities, London is most likely to become the main offshore RMB financial market in Europe with the largest foreign exchange trading center in the world.

According to a report released in 2013 by the global bank Financial Telecommunication Association, London accounts for 62% of RMB pactions in the mainland and outside Hongkong, far exceeding the US, France and Singapore, which account for only 15%, 10% and 8% respectively.

< /p >

< p > in addition, Yao Wei, economist at the Bank of France, said that in the second half of the year, the rebound in economic growth will not be too strong in the second half of the year, and there will not be much devaluation of the RMB.

There is still room for appreciation of the renminbi, but it will not be too large.

< /p >