RMB Has Become The Foreign Exchange Reserve Of Developed Countries For The First Time.

Following the news of Japan's desire to invest in Chinese government bonds at the end of last year, the Japanese side announced yesterday that the specific amount to be purchased for China's national debt is 65 billion yuan.

Experts say this will be the first time RMB has become a foreign exchange reserve of developed countries.

Japanese finance minister Ansheng Chun revealed yesterday that, with the permission of the relevant Chinese authorities, Japan was allowed to purchase up to 65 billion yuan (equivalent to 10 billion 300 million US dollars or 845 billion yen) of China's national debt, and some technical procedures for the purchase of China's national debt would take several months to prepare.

Data released by the Ministry of Finance announced that as of the end of February this year, Japan's foreign exchange reserves amounted to US $1 trillion and 303 billion.

In this way, the purchase amount of US $10 billion 300 million is only 0.8% of that of its foreign exchange reserve.

For the amount of Chinese government bonds planned to be purchased by Japan, Azumi Jun said that considering the various circumstances of Japan's use of foreign exchange assets, it was more appropriate to buy small amounts of Chinese government bonds at the very beginning. "From the original intention of strengthening the economic ties between Japan and China, this is the appropriate scale of purchase."

Last December,

Interpretation

Exergy

Avoiding risks and looking forward to internationalization of RMB

Du Zhengzheng, a macroeconomic analyst at the national securities research center, said that China and Japan are currently the first and second largest holders of US Treasury bonds. Under the background of the increasing uncertainty of US debt, China and Japan are seeking ways to avoid the risk of US debt.

The US dollar has strong volatility recently, and the RMB performance is relatively strong. As the second largest economy in the world, China's economy is stable.

Japan's purchase of Chinese government bonds is mainly based on the security and diversification of foreign investment and investment.

Xing Yuqing, an economist at the Asian Development Bank Research Institute, said in an interview with Xinhua news agency that Japan's decision to buy Chinese treasury bonds historically has been considered at least two aspects.

First of all, from the investment point of view, because the yen exchange rate is overvalued, it is the best time to invest RMB bonds with Japanese yen.

Secondly, many Japanese financial authorities are optimistic about the prospect of RMB internationalization, and believe that Japan's active participation in the process of RMB internationalization is a win-win move.

For the renminbi, to achieve internationalization, we must first realize regionalization in Asia, and continuous and effective monetary cooperation between China and Japan will become the key thrust of RMB regionalization.

For Japan, although the yen is an international reserve currency, it has a smaller scale.

Significance

The key step of internationalization is important demonstration effect.

"About 70% to eight of Japan's foreign exchange reserves become treasury bonds, that is to say, the permitted purchase amounts to about 1% of the Treasury bonds invested in Japan's foreign reserves.

It's not that small at the beginning. "

Zhao Qingming, a senior analyst at China Construction Bank, said: "Japan is an important global economy. It will invest part of its foreign exchange reserves in the renminbi, which has an important demonstration effect."

Zhao Xijun, vice president of the school of Finance and finance of Renmin University of China, also believes that the scale of US $10 billion 300 million is smaller than that of Japan's foreign exchange reserves. However, the symbolic significance of Japanese investment in China's national debt is far greater than the actual significance.

"Japan's choice of investment in China's national debt indicates that it has realized the steady growth of China's economy and the rapid development of the financial market.

It will be sooner or later that more developed countries will invest in Chinese treasury bonds.

Zhao Xijun said that this also reflects the gradual change process of attracting foreign investment in China -- from the initial attraction of overseas Chinese and overseas Chinese to processing industrial investment, to attract western big companies to invest in real economy, and then to funds, equity, mergers and acquisitions, financial investment and foreign reserves, and sovereign funds to invest in bonds other than the real economy.

Along with the continuous promotion and deepening of RMB internationalization process, the RMB's international monetary function has started steadily.

As the reserve option of the reserve currency, the renminbi is attracting more and more attention and favor from many countries.

At present, Malaysia,