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Appreciation of the RMB internationalization must be completed

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Appreciation of the RMB internationalization must be completed
Posted On Friday, 24 Jun 2011
round of competitive devaluation of national currencies to the yuan’s appreciation caused tremendous pressure, and China to control inflation is the inevitable result of the increasing pressure of RMB appreciation, but also to the world for the RMB to bring the best opportunities. Regardless of when the U.S. dollar or the mark and the yen after World War II, they have been able to become the darling of the international financial markets, their common background are in the process of currency appreciation done. RMB to be accepted by the world, holding, until the pricing of international settlement and currency, the appreciation of the process must be completed.

Historically, the United Kingdom to become the world’s first key is the first UK bank to establish a modern system, being in constant appreciation of the pound to help London become the world’s financial center; the United States as a world power is to take the world War of the European currency turmoil, the war time national currency devaluation the dollar as an international settlement currency, the world’s financial center, transferred from London to New York; the rise of the Chinese economy needs international financial voice. Historically, every voice of the international monetary gain with the expected appreciation of the currency, currency appreciation in the currency trade is expected to get under the parties tend to hold great potential for currency appreciation in the market under the freedom of choice naturally get a monetary settlement on the right changes.

euro current debt crisis in Europe under the credit reduces, dollar U.S. Treasury than the warning line to reach a new high long-term trend is bearish, the expected appreciation of the yuan RMB precisely to the market to choose good reason, the RMB settlement at this time open and compete for the right, it is the best time.

RMB obtain certain settlement rights and the international reserve currency of the great features of China’s interests: some of RMB devaluation countries do not tolerate the exploitation, China can use their own money to buy the necessary materials and does not need large reserves. Even if someone attacks future exchange rate , the international community will hold the RMB will not stand idly by.

course, the West will not laissez-faire RMB ‘overseas expansion. ” VISA CUP behavior is blocked at the corporate level for the internationalization of the RMB settlement of a check, because the CUP was a RMB settlement system. Appreciation of the renminbi non-closed case, even if they do not have to encourage overseas banks are willing to hold the yuan, is now the VISA fee is high, but foreign banks still CUP channel to hold the renminbi, it must rely on their VISA market dominance to block, which is driven by the expected appreciation of RMB yuan right to a living example of international settlement.

appreciation of the renminbi will gain a by-product, which is for the Chinese anti-dumping and market economy status issues. Devaluation of the RMB in the channel is not such a problem, because the expectation of RMB appreciation, the West may choose an alternative national currency depreciation is expected to come to the conclusion actually dumping the currency exchange rate expectations derived from the difference rather than true dumping. In the future revaluation will be to avoid this situation, the recent anti-dumping WTO in favor of China is not accidental.

in the expected appreciation, international hot money can be currency arbitrage not only on the interests, may also make a big stock and property markets. Real estate developers fear that the owners sold out early tide, therefore, limited only to the people but a large proportion of price discounts to sell houses to hot money, hot money so it has a higher arbitrage space. In fact, the internationalization of the RMB to find a full hundred percent right time there is only theoretically possible, but no benefit if the people there will be no counterparties plate, around the world China’s ability alone does not have, there is no free lunch.

RMB internationalization is crucial for China’s financial independence, or must rely on China’s currency on foreign exchange credit, the financial system will inevitably not be kidnapped by the exchange rate, the domestic market will inevitably not be foreign currency imported inflation, nor do not hold large foreign exchange reserves. If money is an international, Western developed countries can be the same way as exporting inflation and printing money to enjoy the globalization of competition caused by the depreciation bonus money, which is the difference between a carnivore and herbivore, the decision in a country on the world’s financial architecture position, only this one successfully crossed the chasm, China to complete the historic jump.

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