.Rebirth of 1990's official fortune   Volume 3  Storm and Clouds  Chapter 158  Concept of regional currency

Chapter 158

"You mean our family is not atmospheric?"

"Yes. Now if some import and export settlements use RMB, it will be a relatively good supplement to the national economy."

"Continue talking..." Qian Weihan's eyes flashed for a moment and said quietly.

"The main function of foreign exchange reserves is to ensure the stability of the exchange rate of the country's currency. The current use of foreign exchange reserves in my country supports the internationalization of the RMB. Because it is both realistic and operational and has the strategic significance of the nation's long-term development, it is not only a good choice.

my country's foreign exchange reserves are not only sufficient, but also have a complete range of currencies and varieties. This obviously laid a good foundation for the internationalization of the RMB.

As the financing crisis in Western countries continues to deepen, for the United States, what they most hope is to freeze or persuade my country to temporarily give up the huge debt rights of 500 billion US dollars. Of course, this is impossible. In this way, they hope that my country can highly participate in asset transactions or industrial investments in Europe and the United States. That is to say, as long as my country can cause its value to shrink in the process of using foreign exchange reserves, it will be beneficial to Europe and the United States.

However, in the above markets, trading rules are formulated by the West. No matter how our country does it, whether it is buying financial products, purchasing corporate or strategic resources, as long as my country uses foreign exchange reserves, it will suffer losses to varying degrees. The larger the scale of use, the more serious the losses will be. This fact is being repeatedly confirmed by the activities I have carried out in this field.

Under the current circumstances, my country's foreign exchange reserves have only one purpose, not only will not suffer losses, but will also bring huge long-term benefits. That is, to support the RMB to become an international reserve currency as soon as possible.

Although my country's foreign exchange reserves are relatively large, my country's foreign exchange assets are not large. Mainly because residents' foreign exchange assets are not large. Since the RMB is still inexchangeable, my country's foreign exchange reserves have become the main foreign exchange asset in my country. So far, my country's foreign exchange deposits are US$79.1 billion. With foreign exchange reserves of US$500 billion, my country's total foreign exchange assets are US$600 billion equivalent to my country's GDP 307.

Compared with other countries in the world, which are also dominated by manufacturing, the ratio of my country's foreign exchange reserves to my country's GDP is relatively low.

Compared with the region around our country, South Korea and Hong Kong and Taiwan, China, we have a lot of advantages.

Japan's official foreign exchange reserves are about US$11 trillion. Imports are US$763. Short-term foreign debt is US$1.2 billion. Japan has non-Japanese yen foreign exchange deposits. Among them, residents have non-Japanese yen foreign exchange deposits. At the same time, Japan has US$536 trillion of overseas investments. Among them, residents have US$18.4 billion of seafood. Enterprises hold US$13 trillion of overseas investments. The net international investment header is US$2.2 billion. This sum is US$650,000 of foreign exchange assets. This figure is equivalent to 133 of Japan's GDP in the same period. my country's Hong Kong Special Administrative Region's foreign exchange reserves are US$1825. 39.2 billion of foreign exchange reserves. Hong Kong has non-Hong Kong dollar foreign exchange deposits. 39.

04 USD. Overseas investment USD 27.4 billion. Overseas investment net position is USD 7218. Three items of foreign exchange reserves, non-Hong Kong dollar foreign exchange reserve net assets. Hong Kong owns foreign exchange capital of USD 111.22 trillion. Hong Kong is GDP 517. Taiwan’s foreign exchange reserves - USD 291.7 billion. Input USD 04. Short-term foreign debt is USD 205. Taiwan has non-Taiwan dollar foreign exchange deposits of USD 745. Overseas investment is USD 849.9 billion. Overseas investment leads is USD 466.6 billion. Three items of foreign exchange reserves, non-Taiwan dollar foreign exchange deposits, net investment leads of USD 541.1 billion. Taiwan has USD 138 of Taiwan’s GDP.

South Korea's foreign exchange reserves - US$05. Earn US$4353. Short-term foreign debt is US$1894. South Korea has non-Korea won foreign exchange deposits of US$260. Overseas investment is US$016. Among them, residents and enterprises hold US$138.9 billion in foreign assets. Residents and enterprises hold US$138.9 billion in foreign exchange deposits at the lowest level. Residents and enterprises hold overseas assets in three categories: US$3645. It is the 38 of South Korea's GDP. The overall proportion of foreign exchange assets in South Korea is relatively low. This is also one of the reasons why the Korean won fluctuates significantly during the crisis and changes in foreign capital flows. During this ball and financial crisis, the Korean won fluctuates many times. This year, the Korean won has continued to depreciate by 0.

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Although this international financial crisis cannot quickly shake the dominant position of the US dollar in today's international monetary system, it provides a once-in-a-lifetime major historical opportunity for the internationalization of the RMB. The reason for the US financial crisis is the serious imbalance between its virtual economy and the real economy. The world financial system is eager to add a currency supported by the real economy to the international monetary system. my country's RMB is undoubtedly what everyone hopes for.

my country has a foreign exchange reserve scale of nearly 600 billion US dollars, which is enough to support at least 7 trillion RMB to go abroad. At present, the total global international currency reserve scale is about 7 trillion US dollars. According to this calculation, the RMB has nearly 10 international reserve currencies. If the foreign exchange reserves of these 600 billion US dollars are easily used and it is lost in improper operations, the international space of the RMB will be greatly reduced.

At present, the RMB weekly and regionalization process has begun. The RMB internationalization has gradually become a trend. Even based on the actual proportion of the country's GDP to 6 global GDP, my country's economic strength is enough to support the RMB internationalization rate accounting for 6-10-10 of the global international currency reserves, that is, the scale of RMB internationalization should be 40 billion to 0 billion US dollars. Based on the exchange rate level of the US dollar to 18 RMB, about 3 trillion RMB 5 trillion RMB can go to the country. This RMB has gone abroad to become an international currency. A large-scale foreign exchange reserve is required to ensure that the exchange rate is stable when it suddenly returns.

In other words, when the RMB exchange rate falls sharply, the US dollar, euro and other assets in foreign exchange reserves are sold to ensure that the RMB exchange rate will not be destroyed. Thus, the position of the RMB that has been out of the country in the international reserve currency system is enhanced. This function is the most sacred responsibility of my country's foreign exchange reserves.

Obviously, using foreign exchange reserves to buy the issuance rights of the RMB and support its position in international reserve currencies. It is suspected that my country's foreign exchange reserves are the most effective and long-term strategy to use.

Here, there is a reference to the historical experience value of the pre-Wedker internationalization. Germany backed a large amount of US dollar foreign exchange reserves as a qualitative fund, which made the former Sedkers from 0 to 18 of the international reserve currencies after the war. It is hard to imagine that without the former Sedkers as support, the euro could become an international reserve currencies, because other currencies that constitute the euro, including the French franc Spanish peso, are not as good as the 2.

"You are right. Have you ever thought about what kind of resistance will be encountered here?" Qian Weihan frowned.

"What resistance will be? Southeast Asian countries will be very happy to use RMB to pay their bills. As for the US dollar, who will trust a currency that is turbulent if it is not?" Zhang Yan replied with a smile.

“Do you understand how our foreign exchange reserves come from?”

"Your old man Qian, you still test me for these things. It's too simple

First, import and export trade continues to grow, and foreign exchange reserves formed by the accumulation of long-term trade surpluses.

The second is the foreign reserves formed by FDI. As the most dynamic economy, my country has low-cost human resources and a huge consumer market, which attracts a large amount of international capital. After entering my country, these funds are collected and stored by the central bank, forming foreign exchange assets (negative).

The third is the asset returns of foreign exchange reserves.

The income from assets can be obtained by purchasing foreign investment in US Treasury bonds. If calculated based on the return on foreign exchange reserves of foreign exchange reserves, each of which can be added to tens of billions of foreign exchange reserves.

Fourth, international speculative capital, the so-called "money". A large part of the newly added foreign exchange reserves may come from international investment capital. Although my country currently implements strict controls on capital projects, speculative capital can still enter the domestic market by falsely reporting prepayment of import and export prices under trade and delaying foreign exchange payment and fraudulent direct investment projects that flow into the real estate market and stock market for speculation and arbitrage.

Fifth, foreign currency deposits of foreign institutions. Overseas Chinese foreign institutions and other large US dollars inflows into China also constitute an important part of my country's foreign exchange reserves. ° °

"It's right. You don't pay attention to it. Foreign exchange comes in at the price. When you go out, you must calculate it according to the price!"
Chapter completed!