The External Review Meeting of RMB Internationalization Report 2017
2017-03-25 IMI
Prof. Tu Yonghong chaired the meeting and introduced the distinguished guests of honor. Wang Fang, associate director of the Department of Monetary Finance at Renmin University and senior research fellow of IMI, delivered a speech on behalf of the research team on the report with the theme of “Strengthening Renminbi’s Function in Financial Transactions”. She first reviewed the topics and major conclusions of the report from 2012 to 2016 and illustrated the background, ideas, train of thought, framework, conclusions, and suggestions of this year’s report. At last, she pointed out the focus of this report and the difficulties during the writing process and welcomed critical comments from the external experts.
Experts and scholars expressed their opinions on the structure, logical framework, thematic conclusions, wording, and data analysis of the report. Mr. Wei Benhua thought that this year’s report selected a good topic, expressed in an objective manner, organized in the right direction, and made the focal points stand out, but some words need to be revised. He also offered some suggestions to expand the content of the report. Mr. Chen Weidong pointed out that the report had a complete framework and detailed research, but the RMB internationalization is a long-term national strategy. Thus, the report should avoid giving any illusion that “the RMB internationalization was pursuing high speed and large scale in the short run”. Short-term analyses and suggestions should also be revised. Mr. Guo Song recognized the importance of “the inclusion of the Renminbi to the SDR” in the report, pointed out that the part of direct investment needed to be improved, and the Renminbi night trading could be included. Mr. Guo Jianwei believed that the analysis of the bond market was the highlight of the report and proposed that the reasons for the declining trade finance should be more carefully analyzed and the important role of credit in RMB internationalization should be emphasized. Mr. Lv Wei thought that the report took into consideration both theory and practice with comprehensive contents and demonstrated that reliable support should be provided for data selection and upgrade. Besides, he also offered suggestions on the Belt and Road Initiative and the RMB internationalization as well as the balance between policy implications and market as the driving force. Mr. Wang Min proposed that the report should include more contents about the capital market and risk prevention in financial transactions. He also provided suggestions and support to disseminate the report. Mr. Huang Jinlao thought that the report could include more contents and shared his observations on restrictions on foreign direct investment and key concept discrimination. Mr. Sun Lujun proposed his views on the relationship between financial transactions and the financial market and pointed out that the data update and wording in the report should be improved. Ms. Qu Fengjie thought that this report had a sound logical framework, topic, and organization and advised the report to further explore the real economy. Mr. Zhang Xiaopu indicated that the report was logical, systematic, and well-organized and the research on the RMB internationalization was deepening year by year. He suggested that the report should provide more analyses on the environment for the RMB internationalization, the experience of other currencies’ internationalization and the promotion policy of the offshore market. Prof. Zhao Xijun put forward suggestions on the reason analysis of index changes. He thought that a detailed reason analysis would provide more accurate reference for future policy making. Ms. E Zhihuan believed that the report faithfully recorded the course of history, which was of historic significance and reflected the gradual deepening of research on the RMB internationalization. She also noted that the report needed to improve the RII computation method and evaluation system and to focus on the improvement of the index’s academic influence. Mr. Huang Zhilong shared his views on the relationship between the RMB exchange rate fluctuations and cross-border trade settlement.
At the end of the meeting, Governor Chen Yulu delivered a closing speech. He put forward suggestions to improve the report and pointed out misconceptions from the perspective of epistemology. He also indicated that RMB internationalization should be summarized and analyzed on the long run with a focus on the interaction among currency, finance, and the real economy. The RMB internationalization is based on the existing international economic and financial order under the framework of the United Nations. It aims to improve and complement the existing order rather than overthrow it. Thus, this report should try to avoid misinterpretations in expression. The inclusion of the RMB to the SDR is an institutional recognition of the legitimacy of its internationalization status, which is more important and basic than the short-term volatility of the declining exchange rate and the decreasing share of RMB in the foreign exchange market. The report should resolve the problems in this area and provide clearer argument when making conclusions.
Prof. Tu expressed her sincere gratitude on behalf of the research team to the experts and scholars for their suggestions and promised to make careful revisions to improve the report.
