RMB internationalization of new steps

 1 month, , single foreign investment does not exceed the equivalent of $ 3,000,000.

central bank issued Foreign direct investment in the RMB settlement pilot management approach, Experts believe that this marks the Renminbi capital account convertibility has taken a new step, will help promote the internationalization of RMB.

Salim million, Shanghai is the first industry group to complete the RMB settlement of cross-border trade business, corporate finance department head, said in an interview: RMB shares of Chinese companies can receive RMB can be used for the domestic procurement technology and related equipment, so as to effectively reduce the dollar and other third parties arising from fluctuations in currency exchange settlement risk.

expand overseas investment will

is undoubtedly the huge foreign exchange liquidity to the domestic continuously put the Passive growth in foreign exchange, was forced to put in base money, but also weakened the central bank in monetary policy independence and initiative. And allow the yuan to foreign direct investment, equivalent to one yuan opened to the outside flow channels, is conducive to divert domestic liquidity.

New Year, China's capital account have been introducing open-door policy, the introduction of reverie.



1 11, Shanghai issued carry out . Calyon said in a report in the United States to provide services to offshore renminbi will gradually lead to the Sino-US trade in RMB development.

funds the Center for Bank of East Asia more than Yi told reporters: . 

macro Bohai Securities analyst Du Zheng Cheng, foreign direct investment RMB settlement to carry out an important aim of the pilot, reducing the foreign exchange impact on the RMB issue size, issue currency to gradually change the passive mode.

yuan, including through the establishment of foreign direct investment, mergers and acquisitions, equity participation, etc., have established or acquired outside business or interest in all or part of the project. Domestic institutions is RMB settlement in the cross-border trade within the pilot areas registered non-financial enterprises.

ease liquidity pressures caused by foreign exchange reserves

latest central bank data show that, as of the end of 2010, the state foreign exchange reserves amounted to 2.8473 trillion U.S. dollars, of which the fourth quarter, additional foreign exchange reserves 199 035 000 000 dollars, the highest single-quarter the amount of the additional external storage. At the same time, foreign exchange has continued to climb, in December 2010 and financial institutions foreign exchange reached 403.3 billion yuan, 83.7 billion more than the increase chain.

political commissar of the Industrial Bank economist Lu also pointed out that, given the strong expectation of RMB appreciation, the trade surplus pattern will continue, foreign exchange reserves, the high pressure still exists. Broaden the channels for outflow of RMB overseas, will help alleviate the high foreign exchange reserves, reducing inflation and ease the burden of asset bubbles.

the central bank since July 2009 officially launched the pilot cross-border trade, the RMB settlement since the scope of the pilot and regional growing. August 2010, the central bank to allow access to three types of institutions outside of the inter-bank bond market, the RMB settlement from trade to investment money and then reserve currency, function continuously improved.

capital account liberalization is the only way for the internationalization of RMB