How Much Will RMB Affect The SDR Basket?

Yesterday, the International Monetary Fund (IMF) formally approved.

Included in the special drawing rights (SDR) currency basket.

After the US dollar, the euro, the pound and the yen, the yuan officially became the fifth currency to join the SDR currency basket.

"Entering the basket" marks the international community's further recognition of China's economic development and its status as a Renminbi.

This matter can be "big and tall", and the importance is endless at one thirty.

In fact, the real concern of our people is whether the tickets in our pockets will increase or decrease, and will our daily life be changed?

In fact, after the RMB has joined the SDR basket, it will have a profound impact on our clothing, food and shelter through the role of macroeconomic environment and policy.

It may reduce the pressure on your wallet.

Outbound tourism and shopping are no longer strange to many Chinese people. The fluctuation of RMB exchange rate inevitably affects everyone's nerves.

Yes, RMB is added.

It will have an impact on ordinary people through exchange rate channels.

The currency included in the SDR currency basket is usually regarded as a safe haven currency. When the renminbi enters basket, it will increase the demand for RMB by the public and private sectors.

In this way, there is a market expectation: RMB's "basket" may not immediately cause huge changes in asset allocation, but it will enhance market confidence in RMB.

In the context of the expected appreciation of the dollar appreciation, "basket playing" is conducive to stabilizing the RMB exchange rate and reducing the pressure of devaluation.

This is obviously more profitable than Renminbi assets, which lessen the worries of Chinese people about shrinking their pockets.

[RMB will be more convenient to buy or buy around the world]

In the medium to long term, the "basket" of RMB will accelerate the internationalization of RMB capital market, and promote RMB to become a settlement currency in a wider range and eventually become an international reserve currency.

With the acceleration of RMB internationalization, some commodities may be priced in Renminbi in the future, which will help enterprises avoid exchange rate risks and reduce paction costs, and ultimately benefit the end consumers.

In the field of personal consumption, the good value of RMB's entry into the basket can also be expected.

Lian Ping, chief economist at Bank of communications, said that in the long run, Chinese consumers with renminbi will be more convenient in outbound travel, shopping and investment.

In other words, in the future, the Chinese may be able to consume Renminbi directly outside the country in more countries, increase paction convenience and avoid exchange rate risk.

Perhaps, in the near future, we can also bring RMB into China to go abroad.

Cross border investment may be easier.

At present, the RMB has realized the convertibility of the current account which is mainly used for trade, but the capital account has not yet realized full convertibility, which is mainly used for the capital flow of investment.

And free use is precisely the basic requirement of IMF for the SDR basket to constitute currency.

RMB "basket" may promote China to accelerate the free convertibility of RMB, and accelerate the opening of capital and financial accounts. This may help Chinese people to make asset allocation and trading on a global scale.

In other words, with the matching of channel construction to keep up, we will get rid of the RMB in overseas stocks, buy bonds and buy insurance, and invest in a real estate will be more convenient.

With the two-way flow of funds at home and abroad more convenient, even if you do not invest directly in overseas, you can indirectly configure overseas assets by purchasing financial products.

Of course, foreign investors will also enjoy the same convenience.

For enterprises,

The acquisition will also be more convenient, and the efficiency of capital pfer, such as capital, technology and labor services, will increase significantly, bringing more opportunities for employment and business opportunities to Chinese and foreign people.

Of course, all the expected benefits and convenience depend on the Chinese economy backed by the renminbi.

After all, China's economy is good enough for everyone to do well.