Zhang Jingwei: The End Of QE And Internationalization Of RMB

According to the predetermined pace, the US QE (quantitative easing) policy, which lasted three times in the crisis era, has come to an end.

The announcement of the Federal Reserve is like a ritual, announcing that the United States is out of danger.

However, the volatility of the two US debt market and the other economies' recession before the withdrawal of QE also made the Fed's weak base, and the proposed rate hike was blurred.

US monetary policy is still hovering between normality and normalization.

This is a sequela of crisis.

The world's only superpower and the most powerful dollar in the world have also become confused after the crisis.

We have to say RMB.

Before the crisis and in the crisis, the RMB exchange rate was the reason why the United States accuses China.

The United States keeps a close eye on the renminbi and continues to find fault because China has condensed huge trade surpluses and accumulated nearly $4 trillion in foreign exchange reserves, of which 30% bought us treasury bonds.

In the us again and again three of the QE, China's external assets are compressed and evaporated by the crazy dollar banknote printing machine.

The trade structure and monetary relationship between China and the United States, on the contrary, has been criticized by the United States for its suppression, mainly because the United States is worried that China's strength will subvert the US led global order.

It is difficult to explain the suspicion of the United States to China because of the appreciation of the renminbi.

At the beginning of the year, the people's Bank of China had allowed the RMB to float 2 percentage points against the US dollar, and the RMB depreciated by 2.6% at the end of 3, the biggest decline in the single quarter since 1994.

This is essentially different from the US economic recovery and the exit effect of QE, which leads to capital outflow and currency demotion in emerging markets.

Since the second half of the year, the renminbi has welcomed the longest appreciation period since August 2011.

This means that the yuan tested by the wind and rain has independent rigidity.

The dollar is still strong, and the renminbi is still staring at the dollar, but it is no longer "staring".

The colds of global influenza, drug consumption, and the payment of other currencies in the United States make the aspiring and powerful Renminbi adjust with the trend rather than suit the situation.

Although the US economy is thriving, China's economy is in a difficult pition period.

But in terms of trend, the dollar is high, but the renminbi has already stepped out of the path of internationalization.

It can also be said that relatively speaking, the influence of the US dollar in the post crisis era is weakening and the RMB is strengthening.

Looking back on Zhou Xiaochuan's vision of RMB internationalization and the discussion of RMB internationalization in China's public opinion field.

It is not hard to find that today, with the global economy still uncertain, the internationalization of RMB is no longer a topic of discussion in China, and has gone through several solid steps.

Public institutions in China

China has become pure capital when it comes to the difficulties of pformation and the publication of pessimistic or optimistic comments on a quarterly basis.

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Moreover, China's capital is very popular in Europe, which is in sharp contrast to the US's overexamination of China's capital with national security.

The export of capital is not only the grandiose size of Renminbi, but also the quality of RMB.

The dollar, yen, euro, pound and so on, without "going out" is difficult to become its strong currency position.

At present, from London to Paris, from Frankfurt to Luxemburg, the most famous financial centers in Europe are keen to build RMB offshore markets in Europe, and of course, the layout of RMB clearing banks.

In particular, the British capital London is at the forefront of attracting Chinese investment and promoting the internationalization of RMB in Europe.

Europe is becoming the second largest offshore renminbi market after Asia.

For us dollar hegemony, European countries are also intolerable.

When the United States imposed a fine of $10 billion on the Bank of Paris, France was in an uproar, "reducing the dependence on the US dollar in dealing with international affairs and increasing the global monetary rebalancing, not only the euro, but also the main currencies of emerging economies".

It has been playing the role of "global monetary rebalancing".

The US dollar, yen and eurozone are three years in the global financial order, and they control WBG (World Bank Group), ADB (Asian Development Bank) and IMF (International Monetary Fund).

But the significance of these international institutions lies in ensuring the main interests of the US led western countries and maintaining the global financial order supplemented by the US dollar and the euro yen.

Emerging markets lack the right to speak in these international institutions, and the economies that receive them need to accept the harsh political and market reform requirements put forward by the western countries.

This year, China has led the establishment of BRICs Development Bank and AIIB (Asian infrastructure investment bank), and the SCO Development Bank is also pushing ahead.

These multilateral institutions have formed a certain competitive relationship with the Western led WBG, and also the reality of RMB strength.