RMB "Go To Sea" Force To Activate Offshore RMB Market

In March 28th, the Federal Bank of Germany and the people's Bank of China first signed a memorandum of understanding on the establishment of RMB clearing arrangements in Frankfurt.

Paris is also unwilling to lag behind.

According to the "Sino French relations long-term plan" released in Paris in March 26th, China and France agreed to continue discussions on the establishment of RMB clearing and settlement arrangements in Paris.

Moreover, from the information disclosed in the plan, the French side has obtained the quota of RMB 80 billion yuan, < a href= "//www.sjfzxm.com/news/index_c.asp", "/a" and "investor" (RQFII) issued by the Chinese side.

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< p > "they have no enthusiasm and no active cooperation with China."

Jiang Shu, a senior analyst at Xingye Bank, told the new financial reporter that the construction of offshore RMB offshore market is also largely based on the Chinese government's need for top-level design of RMB a href= "//www.sjfzxm.com/news/index_c.asp" > internationalization "/a".

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< p > because of its special status and advantages, Hongkong has been called the low risk experimental field of RMB internationalization by scholars.

In recent years, Hongkong has also been committed to building RMB Offshore centers and obtaining various policy packages: Hongkong bank can handle RMB Renminbi deposits, exchange, bank cards and remittances and other personal RMB business in Hong Kong; sign RMB currency swap agreements with the central bank, sign RMB clearing agreements; Hongkong's RMB clearing banks and participating banks can enter the mainland interbank bond market for bond pactions after obtaining the approval of the central bank; issue RMB bonds in Hong Kong.

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< p > "to promote the development of Hongkong's" a href= "//www.sjfzxm.com/news/index_c.asp" RMB > /a > offshore market, and to provide a place where risks can be controlled for overseas use of RMB without affecting capital account liberalization. "

Chen Daofu, director of the comprehensive research office of the Financial Research Institute of the development research center of the State Council, once told the new financial reporter that there was a lack of overseas channels of application, and that there was not a certain amount of precipitation outside the RMB, which would seriously affect the acceptance of RMB by the international community.

In order to further activate the overseas RMB market, and in order to slow down the requirement of RMB reflux to open the domestic financial market, it is necessary to develop the offshore RMB market in Hongkong.

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< p > but for Hongkong's long-term goal of internationalization, it is obviously not enough.

In April 2nd last year, the people's Bank of China and ICBC Singapore Branch signed the "clearing agreement on RMB business".

Financial institutions in Singapore and China can not only handle cross-border RMB settlement business through proxy channels, but also handle cross-border RMB settlement business through clearing banks.

On the same day, the people's Bank of China and the Singapore Monetary Authority signed a memorandum of understanding on the RMB business in Singapore.

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< p > Chen Daofu is a supporter of offshore RMB offshore market construction.

In his view, China's capital account has not been completely liberalized because of other factors, which means that the RMB can not be fully convertible between the mainland and the outside world.

Under such conditions, if a RMB offshore market, which is relatively isolated from international financial risks, can be opened to enable foreign RMB holders to realize the value added function of currency as much as possible, the function of valuation and settlement can also be expanded smoothly.

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