The financial market is not just for economists and professional investors. The impact of major financial events will be closely related to the lives of ordinary people. For example, the RMB will soon join the IMF’s SDR currency basket. How will it affect the lives of ordinary people?
1. Understand the concept of SDR
SDR is an international reserve asset created by the International Monetary Fund in the 1970s to support the Bretton Woods system with fixed exchange rates. The governments or central banks of the countries participating in this system need to hold gold and widely accepted foreign currencies, which are used to buy their own currencies in the foreign exchange market in order to maintain the exchange rate of their currencies. Before the renminbi was added, its value was determined by a basket of reserve currencies consisting of the dollar, euro, yen and pound sterling.
2. The symbolic significance of the RMB ratio joining the SDR
The successful addition of the RMB to the SDR can be said to be a win-win result for China and the world. There are a large number of WTO members, but the SDR has only four constituent currencies in the past ten years, representing the four most powerful economies and financial bodies in the world. As the fifth currency to join this "elite" organization, the renminbi bears the recognition of all member states on the national economic and financial system represented by the renminbi, and is an important affirmation of the liberal use of the renminbi and the internationalization of the renminbi.
3. The negative impact after entering the basket remains to be seen
Some foreign financial information agencies believe that the inclusion of the RMB in the SDR may have a negative impact on the domestic stock market in the short term, because the central bank may reduce its intervention in the RMB after being included in the basket, and RMB fluctuations will have a negative impact on investors' risk appetite, which is negative. Chinese stock market.
After entering the basket, the internationalization process of the RMB will be accelerated, and domestic people will be able to hold RMB to consume and invest overseas. impact on the stock market.