Policy recommendations on promoting RMB internationalization through foreign exchange reserve management
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This paper discusses the advantages and disadvantages of foreign exchange reserves on the internationalization of RMB from the perspective of the manifestation and supporting factors of RMB internationalization, and finally puts forward the use of foreign exchange reserve management period to accelerate the pace of RMB internationalization. Foreign exchange reserves can promote the free convertibility of RMB, improve the ability to attract foreign investment and external financing, enhance the ability to intervene in the foreign exchange market, and enhance the ability to adjust international payments. The scale of foreign exchange reserves is not the bigger the better. Excessive foreign exchange reserves will aggravate the phenomenon of nationwide distribution and bottom-hunting overseas, as well as the frequency of enterprises' overseas investment. Therefore, the management of foreign exchange reserves should maintain the basic stability of RMB exchange rate, ensure the reasonable and moderate scale of foreign exchange reserves, and at the same time, support the stable and open economic and financial environment to achieve the purpose of promoting the internationalization of RMB.
RMB internationalization, Foreign exchange reserve management, Policy