Chen Zhiwu: When Countries Trust RMB, Modernization Is The Real End.

The first televised debate was held at the 2014 annual meeting of the Boao forum for Asia (P).

In response to the host's question about Asia's "a href=" //www.sjfzxm.com/news/index_c.asp "economic integration" /a, the biggest challenge, Chen Zhiwu said there were two major challenges.

"One is the financial structure, which is optimistic in many Asian companies, and even some local governments are short-sighted.

Another challenge is geopolitics and lack of trust, which is becoming more and more serious among many Asian countries.

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< p > then Chen Zhiwu also talked about Yellen's question of "the dollar is ours".

He said, "for Chinese listeners, we often hear that the renminbi is our own, and sovereignty is something we should decide for ourselves.

And the chairman of the a href= "//www.sjfzxm.com/news/index_c.asp" > Yellen < /a > can also say this, so this expression can be interpreted in different ways.

One possible explanation is that the US dollar is still in the leading position in the world and is playing a leading role in the international economy.

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< p > for example, many African countries only accept payment with "a href=" //www.sjfzxm.com/news/index_c.asp "US dollar < /a >. If you don't like this fact, you have to internationalize your currency and be strong.

So a sentence can have many interpretations.

China can also further internationalize its currency, and other countries like India can do the same. "

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< p > for the host about the internationalization of the renminbi, Chen Zhiwu said: "in my view, when the RMB is not only nominal in the international currency, and let all countries accept the renminbi as a trustworthy reserve currency, it will come to a conclusion that the modernization process that we started in the last century or in nineteenth Century will be really over.

The opening of capital account has begun, for example, with the establishment of the Shanghai free trade zone.

All the details of the implementation of the Shanghai free trade zone have not yet come out.

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< p > "other countries do not have such a great motive to help use Renminbi outside China.

At the beginning of the financial crisis in October 2008, I was in St Paul, Brazil, and a machinery company in Hunan province visited St Paul, hoping to sell in St Paul, Brazil and elsewhere. At that time, I heard that 10% days after the three day of our meeting, Brazil's real estate sales contract was unable to sign.

He followed Sany to Brazil.

For Brazil buyers, of course, they want to use their own currencies.

But for Chinese sellers, they no longer want to settle in Brazil currency unless they use dollars or euros.

So naturally, we have such a need to use the currency other than the US dollar and euro to achieve flexibility in trading or hedge currency risk, so as to make this sale.

Chen Zhiwu continued.

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