Bank Of China: To Realize All-Round Development Of RMB Internationalization

< p > Li Lihui said in the 2013-2014 annual meeting of China's economy, < a href= "//www.sjfzxm.com/news/index_c.asp" > RMB > /a > capital account convertibility is an important condition for realizing RMB internationalization. It is also conducive to a more balanced capital flow, reducing cross-border capital arbitrage motives, promoting offshore shore market effective operation and ensuring the healthy development of RMB internationalization.

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< p > he suggested that we should first liberate long-term capital flows and release short-term capital flows. First we should liberate direct investment and then release indirect investment. First we should open up the inflow and then release the outflow. We should press ahead with the relevant reforms in commercial credit, bond and stock trading, and basically realize RMB capital account convertibility in 5 years or so.

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< p > "at the same time, it is still necessary to take certain measures, such as strengthening anti-monopoly review, improving anti money laundering anti-terrorism financing policies, clearing and abolishing super national treatment, establishing blacklist system, increasing reserve requirements for non resident deposits, levying Tobin tax on short-term capital flows, effectively controlling systemic risks, preventing cross border capital flows (especially speculative capital flows) from attacking China's financial market and maintaining market stability."

He said.

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< p > he suggested that commodities should be priced in Renminbi.

At present, China has become a major importer of bulk commodities, but almost all the major commodities in the world are priced in US dollars. This will not only bring about exchange rate risk, but also increase the paction cost of Chinese enterprises in the bulk commodity market.

Only when commodities are priced in Renminbi can they further promote related renminbi business in the fields of trade, investment and finance.

The international energy trading center has been set up in the Shanghai free trade zone. This is a good start.

In the future, we can consider this as the basis for the establishment of a commodity pricing system based on RMB pricing, which will further create conditions for the cross-border use of the RMB.

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< p >, he said, to support Shanghai in building the global RMB center.

The establishment of Shanghai a href= "//www.sjfzxm.com/news/index_f.asp" > Free Trade Zone < /a > provides an experimental field for the opening up of China's financial industry.

We should give full play to the pilot role of the Shanghai Free Trade Zone, promote diversification of the RMB reflux channel, enhance the openness of the financial market, expand the use of RMB in capital allocation and financial market, so as to accelerate the construction of Shanghai's international financial center and support Shanghai to build a truly global RMB center.

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< p > he suggested promoting the coordinated development of offshore and offshore RMB markets.

We should continue to expand the breadth and depth of the offshore RMB market in Hongkong, so as to better play the role of Hongkong's international financial centre.

We should actively promote other international financial centers to develop offshore RMB market and gradually form a global RMB market system.

At the same time, we should strengthen the convergence of domestic and foreign markets, actively explore cross-border RMB business in China, and gradually reduce the difference between offshore and offshore prices of RMB.

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< p > he believes that the leading role of China's large commercial banks in the process of RMB internationalization.

China's large commercial banks are duty bound to play the role of the main channel for cross-border RMB movements. They should participate more in large cross-border investment projects, improve their financial innovation capabilities faster, substantially raise the level of a href= "http://fz.sjfzxm.com/" > foreign exchange < /a > trading level, optimize the layout of major international financial centers, and make greater efforts to support the all-round development of RMB internationalization.

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