The international financial crisis triggered by the subprime mortgage problem in the United States spread like mercury, the western financial buildings will collapse, and countries have introduced measures to save their precarious banks, insurance and securities industries, and the shortage of liquidity has become a worldwide complex problem. The United States, which has mastered the world printing press, issued US dollars at full capacity, which led to the credit crisis and directly led to the depreciation and shrinkage of China's US dollar assets. How to deal with the global financial crisis and better safeguard the interests of China has become the focus of attention of experts and scholars in the industry.

By analyzing a series of actions taken by China to deal with the US dollar credit crisis (from currency swap agreement to super-sovereign currency initiative to RMB settlement pilot of cross-border trade), it is not difficult to find that the main policy lines in the field of foreign monetary finance are: expanding RMB settlement business of cross-border trade, cultivating overseas issuance market of RMB bonds, and promoting RMB internationalization; By adjusting the structure of foreign assets, optimizing the allocation of foreign exchange reserves and increasing currency swap agreements; By expanding the SDR function, building a diversified international reserve system and creating a super-sovereign currency, the risk of foreign exchange reserves can be dispersed and the safety of US dollar assets can be guaranteed.

First, the concept of clarification

Currency swap, currency internationalization and super-sovereign currency are three important concepts in the field of monetary finance, which are interrelated and step by step. Usually, currency swap agreements are signed between two countries to avoid exchange rate risks. With the strengthening of a country's economic strength, the increase of currency swap agreements paves the way for its currency to go global and become an international reserve currency. In the diversified international monetary system, the result of the game of major sovereign currencies will inevitably give birth to super-sovereign currencies.

1. Currency swap Currency swap refers to a market transaction in which two parties exchange the principals of different currencies at a fixed exchange rate at the beginning, and then exchange their respective principals and pay corresponding interest at the end of the period. After the central banks of the two countries reach a currency swap agreement, in case of emergency, one party can mortgage the agreed amount of its own currency to the other party to obtain its own currency or other international reserve currencies lent by the other party, thus greatly increasing its short-term foreign exchange reserves and enhancing its ability to resist financial turmoil. Currency swap is a common hedging tool, which is mainly used to avoid medium and long-term exchange rate risks and control import and export trade costs. In bilateral trade, a country's central bank obtains other countries' currencies through currency swap and injects them into its financial system, so that domestic enterprises can borrow other countries' currencies to pay for goods imported from other countries, while the export enterprises of the other side get payment denominated in local currency, which can effectively avoid foreign exchange.

Interest rate risk.

2. Internationalization of Currency Under the credit paper currency system, it is generally accepted by all countries in the world that it transcends the borders of the issuing country and plays the national currency of functions of money internationally, which is an international currency. Currency internationalization is the process of a country's currency moving towards international currency. According to this definition, the current hot-selling internationalization of RMB is a process in which RMB gives full play to the functions of international currency such as pricing unit, exchange medium and value storage, and is widely recognized and accepted by the international market. The international status of a country's currency is closely related to its economic strength, and its currency internationalization process is the inevitable result of its economic strength.

3. Super-sovereign currency Super-sovereign currency is "an international reserve currency that is decoupled from sovereign countries and can keep its currency value stable for a long time." It can not only overcome the inherent defects of sovereign credit currency as a reserve currency, reduce the probability of financial crisis, but also enhance the resilience of the international community, making it possible to create and regulate global liquidity, which is the ideal goal of the reform of the international monetary system. Although super-sovereign currency is still a controversial topic at present, the focus of the debate is not that there is a problem with this concept in theory, but how much resistance it has in practice. Because it involves many interests, although the idea has been around for a long time, there is still no substantial progress), but it points out the direction for us to move forward.

Second, China's foreign currency attack and defense strategy under the international financial crisis

Under the financial crisis, facing the century exam, China government weighed the advantages and disadvantages of various measures, decisively introduced a series of foreign monetary policies, and played a set of financial combination boxing. This strategic deployment is divided into three steps.

(1) Short-term goal: optimize the structure of foreign assets, increase currency swap agreements, and ensure the safety of US dollar assets.

The risks faced by China's record foreign exchange reserve of $239,965,438 +0. S2 {z is obvious to all. Optimizing the structure of foreign assets, building a diversified international reserve system, n/~ I] currency swap agreements, and reducing the risk of US dollar exchange rate fluctuations have become * * * knowledge. At present, we should focus on how to successfully complete this transformation and minimize the side effects.

1. Optimize the allocation of international reserve structure and spread the risk of US dollar exchange rate.

The spread of the financial crisis forced the U.S. federal government to use a huge fiscal deficit to save the U.S. economy, and the proliferation of dollars led to a sharp "shrinkage" in the value of China's foreign exchange reserves (Chinese mainland's foreign exchange reserves ranked first in dollar assets)

More). Spreading the risk of US dollar exchange rate and ensuring the safety of foreign assets have become the focus of political and academic circles. Generally speaking, a country's international reserves include four categories: foreign exchange reserves, gold reserves, SDR (special drawing rights position) and reserve positions in the IMF. Among them, foreign exchange reserves are creditor's rights held by a country's monetary authorities in the form of bank deposits, stocks and long-term and short-term government bonds, which can be used at any time when the balance of payments is in deficit. The main forms of foreign exchange reserves are cash and foreign securities investment. Because foreign exchange reserves are responsible for adjusting the balance of payments and ensuring external payments; Intervene in the foreign exchange market and stabilize the local currency exchange rate; Maintain international reputation and improve financing ability; Enhance comprehensive national strength, resist financial risks and other important tasks, so we should use it carefully. Judging from the use of foreign exchange reserves in developed countries, developed economic powers generally convert foreign exchange reserves into gold reserves. I MF statistics show that as of June 5438+ 10, 2009, the proportion of official gold reserves in foreign exchange reserves in the United States was 77.4%, that in France was 70.6 ‰, that in Germany was 69.2‰ and that in Chinese mainland was only 1.97o ‰. Although China's gold reserves have reached 1054 tons, ranking fifth in the world, the ratio of I: U ~ J in its foreign exchange reserves is far lower than that of other countries. In view of this, we should actively adjust the structure of foreign assets and continue to increase international hard currency such as gold reserves. On this issue, Russia's experience can be used for reference: First, buy a lot of gold and increase the proportion of gold in the reserve (up to10% at present); The second is to substantially increase the proportion of non-US dollars in reserves; The third is to repay foreign debts in advance; The fourth is to invest in high-tech industries. The practice of developed countries in Europe and America also shows that it is a trend to use foreign exchange reserves for diversified investment. Therefore, we should optimize the allocation of foreign exchange reserves, increase the proportion of foreign direct investment, encourage and support powerful enterprises to purchase foreign exchange from foreign exchange management departments for overseas assets acquisition, improve the efficiency of foreign securities investment, and build a safe and diversified international reserve system.

2. Increase partners in currency swap agreements and build an external network for RMB settlement. Although currency swap is bilateral, with the increase of bilateral quantity, a multilateral network will gradually form. It is a strategic choice to gradually build a foreign network of RMB in Asia and the world through currency swap. Looking at the currency swap agreements signed over the years, it is not difficult to find that they have experienced careful testing, from passive to active, from small to large, from near to far, from urgent to slow. 1998 after the Asian financial crisis, Asian countries accelerated the pace of cooperation in the financial field. In May 2000, 1 0 ASEAN countries and China, Japan and South Korea decided to establish a regional currency swap network through Chiang Mai initiative to maintain the stability of Asian financial markets. So far, China Bank has successively signed bilateral currency swap agreements with the central banks of Thailand, Japan, South Korea, Malaysia, Belarus, Indonesia, Argentina and Hong Kong Monetary Authority, and continues to actively respond to the needs of other countries and negotiate with them on signing bilateral currency swap agreements. As a way to export liquidity to the outside,

In fact, currency swap has very rich interests, which means change. On the surface, it is a kind of currency reciprocal loan between central banks, but most of the purchases are made by foreign central banks for trade settlement and reserve with China by RMB, while the foreign currency held by the Central Bank of China is mostly pledged, which actually expands the circulation scope of RMB. This is of great significance for building the RMB into a strong global currency and reducing its dependence on the US dollar. Vigorously promoting bilateral local currency swap is not only a "magic weapon" to enhance regional liquidity and mutual assistance, but also a "sharp weapon" to spread the risk of China's foreign exchange reserves. These currency swap agreements with different amounts and different purposes together constitute the "protective net" of China's foreign currency strategy.

(2) Medium-term goal: expand the pilot business of RMB overseas settlement, cultivate the overseas issuance market of RMB government bonds, and enhance the international status of RMB.

In order to ensure the safety of US dollar assets, the China government should not only strengthen its own economic strength from the inside, but also focus on the outside to promote the RMB to become a strong currency. 1. Expand RMB settlement business for cross-border trade and promote RMB to become a strong currency. To become a strong currency, RMB must go through three stages: settlement currency, investment currency and final reserve currency, and the process also follows the order of first periphery, then regionalization and then internationalization. With the rapid promotion of China's national strength, the international status of RMB has also risen, making it a sought-after property. For neighboring countries and regions, a prosperous and stable China is a trustworthy partner and "follows the strong".

The tradition of realism makes these countries prefer RMB. Compared with dollar settlement, RMB settlement of cross-border trade helps enterprises avoid exchange rate risks, reduce transaction costs and accurately estimate expected returns. Based on the general lack of hard currency in neighboring countries and the good market reputation of RMB, RMB has become the de facto settlement currency and means of payment in border areas. Under the situation of international financial crisis, it is of great significance to carry out RMB settlement of cross-border trade to promote the development of economic and trade relations between China and neighboring countries and regions and maintain the steady growth of foreign trade. Therefore, the State Council decided to formally launch the RMB settlement pilot business of cross-border trade in five cities: Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan. The pilot project of RMB overseas settlement shows that China's trading partners have gradually recognized the status and stability of RMB, which is another step of RMB internationalization.

2. Gradually establish an overseas issuance market for RMB bonds to enhance the international status of RMB. Under the condition that RMB is not freely convertible, offshore financial business is an important channel for RMB to go international, and offshore financial center is an important carrier for RMB to be converted into international currency. If RMB wants to become a powerful international currency, it is very important to cultivate the overseas issuance market of RMB bonds, so the strategy of Hong Kong first and then overseas came into being. China issued RMB government bonds to overseas investors for the first time in Hongkong, which provided an attractive opportunity for overseas investment institutions.

Make efforts to invest in RMB. Although the initial amount is not large, this move is a major progress in the internationalization of the RMB. As one of the many measures of internationalization, the issuance of RMB government bonds in Hong Kong shows that the China government is prepared to take further actions to promote the establishment of RMB overseas bond market and gradually get rid of excessive dependence on the US dollar. Although there are only a handful of enterprises that use RMB for trade settlement at present, and the scale of government bonds issued in Hong Kong is quite limited, the implementation of RMB trade settlement pilot and the establishment of RMB government bond market, the two wheels of RMB internationalization, will certainly continue.

(3) Long-term goal: promote IMF reform, expand the role of SDR, and create a super-sovereign currency.

We should be down-to-earth and look to the future. The international financial crisis not only urges us to deeply reflect on the current international financial system, but also provides us with an opportunity to promote the reform of the international monetary system.

1. Realistic choice: expand the role of SDR and promote the reform of the International Monetary Fund. Under realistic conditions, the international community should consider comprehensively expanding the role of SDR. As early as the defects of the Bretton Woods system were exposed, the IMF created SDR at 1969 to alleviate the risk of sovereign currency as a reserve currency. Unfortunately, due to the limitation of distribution mechanism and scope of use, the role of SDR has not been fully exerted so far. Because SDR has the characteristics and potential of super-sovereign reserve currency, its existence provides the possibility for the reform of the international monetary system. At this stage, efforts should be made to promote the reform of SDR allocation, and the fourth revision of the articles of association of 1997 I MF and the corresponding SDR allocation resolution should be implemented as soon as possible, so that the member countries that joined after198/kloc-0 can also enjoy the benefits of SDR, and on this basis, further expansion of SDR issuance should be considered. Due to the huge blood loss of IME, it is urgent to inject capital to expand its "new loan arrangement" mechanism, and China successfully won the second SDR rights issue of 900 {L} dollars by using its trump card with abundant liquidity and buying I MF bonds as a bargaining chip. Although this amount is a drop in the bucket for China's huge foreign exchange reserves, it is obvious that China will not stop there. In order to properly reflect China's position and strength in the world financial and economic fields, China needs to have enough voice and representation in the international financial system. In the case of hard currency shortage in other countries, it is reasonable for China to purchase SDR from other countries to further enhance its voice in I ME. Due to the severe financial situation, monolithic vested interest groups pledged at the G20 Summit to increase the share of emerging markets and developing countries in the IMF to at least 5%. As I MF President Kahn said: It is time to adjust the voting rights of I MF member countries. China can play a more important role and is ready to take on more responsibilities.

2. Adjust measures to local conditions: strengthen monetary cooperation in Asia and improve the pool of foreign exchange reserves in Asia. When the financial crisis affects the stability of a country's currency, the response of regional monetary organizations is often faster and more effective than that of global monetary institutions. Encouraged by the Euro, experts and scholars from Asian countries learn from its practical experience and keep exploring and creating.

Feasibility of "Asian dollar"

However, in practice, the establishment of Asian super-sovereign currencies faces great "resistance". No matter how economically feasible the "Asian dollar" or "Asian Monetary Fund" is, it is impossible to avoid the influence of domestic and foreign political factors. An important revelation of regional integration is intergovernmental doctrine, which is an exchange of interests based on bargaining. Not to mention the different social systems and cultural traditions of Asian countries, this is an insurmountable barrier in terms of their complex regional political situation. Although the yen is an ancient and powerful currency, Japanese politics is difficult to convince the public; Although the won came from behind, its overall strength was too weak. The rise of RMB is strong, but it is hard to say. The United States, which has a global printing press, obviously does not want a printing press to appear in Asia, and always keeps a high pressure on the motion to create the "Asian dollar". Due to the complicated international political situation and uneven regional economic development, the Asian version of the International Monetary Fund has been delayed. In the face of the financial crisis, in order to ensure that the central banks of member countries have enough funds to resist the speculative attacks that their currencies may encounter, with the support of China, Japan and South Korea, Asia finally established a pool of foreign exchange reserves. After the newly established fund is actually put into operation, it will naturally use funds to provide loan assistance to member countries in currency crisis. Although the amount of the fund is not huge, it provides a flood discharge channel for China's huge foreign exchange reserves. China should strengthen cooperation with Japan and South Korea, and gradually improve the pool of foreign exchange reserves in Asia.

3. The ultimate goal: to create a global super-sovereign currency.

The monetary policy of international reserve currency holders is influenced by the monetary policy of reserve currency issuing countries, which often give priority to their own economic needs rather than the international economic situation. Undoubtedly, creating a super-sovereign currency is the best solution to overcome this problem. It can not only get rid of domestic economic constraints, but also effectively regulate international liquidity. Nevertheless, it is still difficult to create a super-sovereign international reserve currency. The first thing to bear the brunt is the fierce opposition and obstruction of vested interest groups led by Britain and the United States. Whether it is the SDR expansion plan or a new stove, it can never replace the dollar empire and the euro empire. Due to the financial crisis, the call for reform is getting louder and louder. As a major stakeholder, China has an obligation to be the standard bearer of change. In order to ensure the safety of US dollar assets, China, contrary to the tradition of low-key and restrained, constantly released strong signals from high-level government, and joined forces with Russia, India and Pakistan to propose a high-profile motion to create a super-sovereign currency. When the effect of dialogue and consultation with the United States on the dollar credit crisis is not satisfactory, the super-sovereign currency motion is a good move to shake the mountain. In order to maintain the status of the US dollar as an international reserve currency, the United States must take effective measures to prevent the decline of the US dollar status in a responsible spirit, which is the guarantee for the safety of China's US dollar assets. China's efforts and determination will surely touch the balance of major reserve currency issuers, taking into account the right monetary policies.

Integrate the domestic economy with the international economy and earnestly safeguard the stability of the international financial market.

Prospect of China's currency attack and defense strategy

Although Dai Xianglong bluntly said that after Locke, an international monetary system dominated by US dollars, euros, RMB and other currencies will be formed. Mundell, the father of the euro, also put forward a bold proposal: let the RMB become an international currency and remove the pound from it. However, considering that China's current financial system is still not perfect compared with western developed countries, the supervision mechanism is not perfect, and the internationalization of RMB is facing huge financial risks, and its internationalization process will inevitably face the "Triffin dilemma". We will not make the same mistake as the US dollar. It is unnecessary and impossible for RMB to replace the US dollar. The internationalization of RMB is not the ultimate goal, but the development direction, which serves to promote the diversification of international reserve currencies until it becomes the overall goal of super-sovereignty.

The financial crisis has fully exposed the inherent defects of the international monetary system, such as the difficulty of effective supervision by the international community and the inability of gold to provide sufficient liquidity for the world. The international community should strive to improve the regulation mechanism of international reserve currency issuance, keep the exchange rate of major reserve currencies relatively stable, and promote the development of the international monetary system in a diversified and rational direction. In this context, the success or failure of China's foreign currency attack and defense depends not only on its own economic strength, but also on the outcome of the game with other countries' interests. If we say that the existing international monetary system is on the other side of this danger, and the future monetary and financial system of "one super-strong" or even "super-sovereign" is the other side of a great change, then China's foreign monetary policy will be the bridge of this system change. The change from "this shore" to "the other shore" will change the current world economic order and all our understanding of the international monetary system. Money and economy

The international financial crisis triggered by the subprime mortgage problem in the United States spread like mercury, the western financial buildings will collapse, and countries have introduced measures to save their precarious banks, insurance and securities industries, and the shortage of liquidity has become a worldwide complex problem. The United States, which has mastered the world printing press, issued US dollars at full capacity, which led to the credit crisis and directly led to the depreciation and shrinkage of China's US dollar assets. How to deal with the global financial crisis and better safeguard the interests of China has become the focus of attention of experts and scholars in the industry.

By analyzing a series of actions taken by China to deal with the US dollar credit crisis (from currency swap agreement to super-sovereign currency initiative to RMB settlement pilot of cross-border trade), it is not difficult to find that the main policy lines in the field of foreign monetary finance are: expanding RMB settlement business of cross-border trade, cultivating overseas issuance market of RMB bonds, and promoting RMB internationalization; By adjusting the structure of foreign assets, optimizing the allocation of foreign exchange reserves and increasing currency swap agreements; By expanding the SDR function, building a diversified international reserve system and creating a super-sovereign currency, the risk of foreign exchange reserves can be dispersed and the safety of US dollar assets can be guaranteed.

First, the concept of clarification

Currency swap, currency internationalization and super-sovereign currency are three important concepts in the field of monetary finance, which are interrelated and step by step. Usually, currency swap agreements are signed between two countries to avoid exchange rate risks. With the strengthening of a country's economic strength, the increase of currency swap agreements paves the way for its currency to go global and become an international reserve currency. In the diversified international monetary system, the result of the game of major sovereign currencies will inevitably give birth to super-sovereign currencies.

1. Currency swap Currency swap refers to a market transaction in which two parties exchange the principals of different currencies at a fixed exchange rate at the beginning, and then exchange their respective principals and pay corresponding interest at the end of the period. After the central banks of the two countries reach a currency swap agreement, in case of emergency, one party can mortgage the agreed amount of its own currency to the other party to obtain its own currency or other international reserve currencies lent by the other party, thus greatly increasing its short-term foreign exchange reserves and enhancing its ability to resist financial turmoil. Currency swap is a common hedging tool, which is mainly used to avoid medium and long-term exchange rate risks and control import and export trade costs. In bilateral trade, a country's central bank obtains other countries' currencies through currency swap and injects them into its financial system, so that domestic enterprises can borrow other countries' currencies to pay for goods imported from other countries, while the export enterprises of the other side get payment denominated in local currency, which can effectively avoid foreign exchange.

Interest rate risk.

2. Internationalization of Currency Under the credit paper currency system, it is generally accepted by all countries in the world that it transcends the borders of the issuing country and plays the national currency of functions of money internationally, which is an international currency. Currency internationalization is the process of a country's currency moving towards international currency. According to this definition, the current hot-selling internationalization of RMB is a process in which RMB gives full play to the functions of international currency, such as pricing unit, exchange medium and value storage, and is widely recognized and accepted by the international market. The international status of a country's currency is closely related to its economic strength, and its currency internationalization process is the inevitable result of its economic strength.

3. Super-sovereign currency Super-sovereign currency is "an international reserve currency that is decoupled from sovereign countries and can keep its currency value stable for a long time." It can not only overcome the inherent defects of sovereign credit currency as a reserve currency, reduce the probability of financial crisis, but also enhance the resilience of the international community, making it possible to create and regulate global liquidity, which is the ideal goal of the reform of the international monetary system. Although super-sovereign currency is still a controversial topic at present, the focus of the debate is not that there is a problem with this concept in theory, but how much resistance it has in practice. Because it involves many interests, although the idea has been around for a long time, there is still no substantial progress), but it points out the direction for us to move forward.

Second, China's foreign currency attack and defense strategy under the international financial crisis

Under the financial crisis, facing the century exam, China government weighed the advantages and disadvantages of various measures, decisively introduced a series of foreign monetary policies, and played a set of financial combination boxing. This strategic deployment is divided into three steps.

(1) Short-term goal: optimize the structure of foreign assets, increase currency swap agreements, and ensure the safety of US dollar assets.

The risks faced by China's record foreign exchange reserve of $239,965,438 +0. S2 {z is obvious to all. Optimizing the structure of foreign assets, building a diversified international reserve system, n/~ I] currency swap agreements, and reducing the risk of US dollar exchange rate fluctuations have become * * * knowledge. At present, we should focus on how to successfully complete this transformation and minimize the side effects.

1. Optimize the allocation of international reserve structure and spread the risk of US dollar exchange rate.

The spread of the financial crisis forced the U.S. federal government to use a huge fiscal deficit to save the U.S. economy, and the proliferation of dollars led to a sharp "shrinkage" in the value of China's foreign exchange reserves (Chinese mainland's foreign exchange reserves ranked first among dollar assets).

More). Spreading the risk of US dollar exchange rate and ensuring the safety of foreign assets have become the focus of political and academic circles. Generally speaking, a country's international reserves include four categories: foreign exchange reserves, gold reserves, SDR (special drawing rights position) and reserve positions in the IMF. Among them, foreign exchange reserves are creditor's rights held by a country's monetary authorities in the form of bank deposits, stocks and long-term and short-term treasury bonds, which can be used at any time when the balance of payments is in deficit. The main forms of foreign exchange reserves are cash and foreign securities investment. Because foreign exchange reserves are responsible for adjusting the balance of payments and ensuring external payments; Intervene in the foreign exchange market and stabilize the local currency exchange rate; Maintain international reputation and improve financing ability; Enhance comprehensive national strength, resist financial risks and other important tasks, so we should use it carefully. Judging from the use of foreign exchange reserves in developed countries, developed economic powers generally convert foreign exchange reserves into gold reserves. I MF statistics show that as of June 5438+ 10, 2009, the proportion of official gold reserves in foreign exchange reserves in the United States was 77.4%, that in France was 70.6 ‰, that in Germany was 69.2‰ and that in Chinese mainland was only 1.97o ‰. Although China's gold reserves have reached 1054 tons, ranking fifth in the world, the ratio of I: U ~ J in its foreign exchange reserves is far lower than that of other countries. In view of this, we should actively adjust the structure of foreign assets and continue to increase international hard currency such as gold reserves. On this issue, Russia's experience can be used for reference: First, buy a lot of gold and increase the proportion of gold in the reserve (up to10% at present); The second is to substantially increase the proportion of non-US dollars in reserves; The third is to repay foreign debts in advance; The fourth is to invest in high-tech industries. The practice of developed countries in Europe and America also shows that it is a trend to use foreign exchange reserves for diversified investment. Therefore, we should optimize the allocation of foreign exchange reserves, increase the proportion of foreign direct investment, encourage and support powerful enterprises to purchase foreign exchange from foreign exchange management departments for overseas assets acquisition, improve the efficiency of foreign securities investment, and build a safe and diversified international reserve system.

2. Increase partners in currency swap agreements and build an external network for RMB settlement. Although currency swap is bilateral, with the increase of bilateral quantity, a multilateral network will gradually form. It is a strategic choice to gradually build a foreign network of RMB in Asia and the world through currency swap. Looking at the currency swap agreements signed over the years, it is not difficult to find that they have experienced careful testing, from passive to active, from small to large, from near to far, from urgent to slow. 1998 after the Asian financial crisis, Asian countries accelerated the pace of cooperation in the financial field. In May 2000, 1 0 ASEAN countries and China, Japan and South Korea decided to establish a regional currency swap network through Chiang Mai initiative to maintain the stability of Asian financial markets. So far, China Bank has successively signed bilateral currency swap agreements with the central banks of Thailand, Japan, South Korea, Malaysia, Belarus, Indonesia, Argentina and Hong Kong Monetary Authority, and continues to actively respond to the needs of other countries and negotiate with them on signing bilateral currency swap agreements. As a way to export liquidity to the outside,

In fact, currency swap has very rich interests, which means change. On the surface, it is a kind of currency reciprocal loan between central banks, but most of the purchases are made by foreign central banks for trade settlement and reserve with China by RMB, while the foreign currency held by the Central Bank of China is mostly pledged, which actually expands the circulation scope of RMB. This is of great significance for building the RMB into a strong global currency and reducing its dependence on the US dollar. Vigorously promoting bilateral local currency swap is not only a "magic weapon" to enhance regional liquidity and mutual assistance, but also a "sharp weapon" to spread the risk of China's foreign exchange reserves. These currency swap agreements with different amounts and different purposes together constitute the "protective net" of China's foreign currency strategy.