RMB Or Become A Financing Currency May Aggravate The Pressure Of RMB Depreciation.

Andy Ji, a foreign exchange strategist at Commonwealth of Australia bank, believes that with the establishment and operation of the Asia Investment Bank, the renminbi is expected to become a key financing currency in the region.

Financing currencies usually have lower interest rates and higher liquidity. These factors may aggravate the pressure of RMB depreciation.

Historically,

Usually there will be greater devaluation pressure.

2014

After the negative interest rate was chosen, the euro officially raised money, and then the euro continued to depreciate against the US dollar, falling from 1.04 to 1.04.

And the yen, the traditional financing currency, is also in a downward trend for a long time.

Andy made the above remarks in an interview with Bloomberg news, after which he successfully predicted.

Will be included in the SDR basket.

Andy also believes that the current depreciation of the renminbi on the shore is acquiesced by the Central Bank of China, with the purpose of observing offshore traders' attitude towards the renminbi, so as to better manage the foreign exchange gap after FOMC.

Since the beginning of this month, it has officially become the reserve currency of IMF, and the renminbi has only gone through a short period of stabilization.

Over the past 5 trading days, the daily decline of RMB around 100 points has descended step by step, which triggered a discussion about the prospect of RMB.

Economists from the CF40 survey of professional think tanks show that 10% of economists believe that in 2016 the renminbi was "extremely unlikely" to depreciate significantly, while 8% economists thought that the significant devaluation trend was "extremely likely".

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Former Federal Reserve Chairman Bernanke also said on the 1 th of this month that IMF will take the renminbi into SDR's actions, reflecting a reasonable recognition of China's economic status, but that does not mean that the yuan will challenge the global position of the US dollar.

The global position of the dollar is the result of market operation.

On the 30 day of last month, Xinhua interviewed the Nicholas Radi Institute of international economics, a well-known think-tank in Washington, D.C., and the Chinese expert on economic issues also said that the US dollar would be the main reserve currency for a long time. The "basket" of the renminbi would not challenge the position of the US dollar as the main reserve currency. Pedersen,

CF40, a professional think-tank in China, argues that if, from now on, to enhance the flexibility of the RMB exchange rate and properly handle it, perhaps fifteen years later, the renminbi may become an international currency that keeps pace with the US dollar.

Economists interviewed also cast their eyes on the trend of the renminbi.

On the question of whether the renminbi will depreciate significantly next year, 10% of economists believe that the renminbi is "extremely unlikely" to depreciate significantly in 2016, but only 8% of economists think that the significant devaluation trend is "extremely likely".

With regard to the recent trend of RMB, after the accession to SDR, the RMB only maintained a brief "calm".

On the five trading days, the offshore exchange rate suddenly dropped downward by about 100 points per day. Today, the offshore renminbi has dropped again by more than 100 points in the morning, and the offshore price drop has exceeded 200 points, and the price difference between the two sides has expanded to 700 points.