Experts say it will help strengthen the financial stability of emerging economies
On June 25, the People's Bank of China and the Bank for International Settlements (BIS) signed an agreement to participate in the RMB Liquidity Arrangement (RMBLA).The RMB Liquidity Arrangement is a financial institutional arrangement initiated and designed by the Bank for International Settlements, which aims to provide liquidity support to the central banks participating in the arrangement when the financial market fluctuates by building a reserve fund pool.
The People's Bank of China has actively participated in the design of the arrangement, and the other first participants are Bank Indonesia, Bank Negara Malaysia, the Hong Kong Monetary Authority of China, the Monetary Authority of Singapore and the Central Bank of Chile.The RMB liquidity arrangement shall be jointly funded by all participating parties, and the paid-in capital of all parties shall not be less than RMB 15 billion or its equivalent in USD.When there is a demand for liquidity, in addition to withdrawing its capital contribution, participants can also borrow short-term funds from the reserve pool with qualified collateral.
"This financial institutional arrangement is similar to a mutual fund pool jointly funded by the central banks in various regions. Once the international financial market fluctuates violently, participants can easily obtain RMB liquidity support according to relevant rules." Macro Researcher of the Financial Market Department of China Everbright Bank In an interview with the "Securities Daily" reporter, Zhou Maohua said that my country's central bank actively participated in the design of the arrangement, which strengthened my country's cooperation with international financial organizations and central banks in other regions, which will help improve my country's ability to participate in international financial governance and enhance my country's ability to participate in international financial governance. The right to speak in international financial governance.At the same time, the institutional arrangement reflects that countries pay more attention to the security of RMB liquidity, which will help to further promote the internationalization of RMB.
Wang Youxin, a senior researcher at the Bank of China Research Institute, told the "Securities Daily" reporter that in the past, when a liquidity crisis or financial crisis occurred, the international liquidity supplementary arrangements were mainly based on the currencies of developed economies such as the US dollar, and the participants were mainly developed economies. Central banks of various countries, and emerging economies have limited liquidity replenishment channels and are more exposed to the impact of international financial risks.The RMB liquidity arrangement includes major emerging economies in Asia-Pacific and Latin America, providing emerging economies with new emergency liquidity supplement channels and options, which is conducive to enhancing China's participation, voice and influence in the international monetary system to better play an active role in maintaining global financial stability.
The People's Bank of China said, "Participating in the RMB liquidity arrangement will help strengthen cooperation with the Bank for International Settlements, meet the reasonable demand for RMB in the international market, and make positive contributions to strengthening the regional financial safety net." The Hong Kong Monetary Authority of China said in the announcement "The arrangement will complement the existing liquidity arrangements of the Bank for International Settlements, providing additional liquidity support to participating central banks during periods of market volatility, which will help to promote financial stability," said Mr.
Wang Youxin believes that the RMB is being used more and more in the international bilateral and multilateral markets, trade settlement, international investment and financing, foreign exchange transactions and other fields. It is included in the foreign exchange reserve by more central banks and the scale of the reserve is gradually increasing. and willingness to use gradually increased.Indonesia, Malaysia, Singapore and other Southeast Asian countries have close economic and trade cooperation with China, the foundation of RMB use is relatively solid, and the market demand is strong.
Zhou Maohua said that for the international financial market, this institutional arrangement will help consolidate the regional financial safety net.In the face of severe fluctuations in the financial market, this institutional arrangement can effectively meet the international market's demand for RMB liquidity, help stabilize market confidence and expectations, and minimize the negative impact of market fluctuations.
