Recently the SDR news is filled with the headline of economic version. Yes, the Yuan (RMB) was normally incorporated into the SDR on 1st. Dec. which did excite all our Chinese people. Then what is the SDR? What will be the advantages for Chinese exporting enterprises? I will share my views here:
The success of Yuan’s into SDR reflects the real progress of international markets
There are only 5 types of currencies in the SDR: US dollar, Euro, Chinese Yuan, Japanese Yen and Pound! And Chinese Yuan covers 10.92%, ahead of YEN and Pound. SDR (Special Drawing Right) issued in 1970. It is the right the IMF (International Monetary Found) allocated to their members. The government of the member can make up the balance of payment deficit, and even to repay loan to the IMF, or directly exchange to currency with gold to act as international reserves. In fact, these actions aim to have these currencies play important roles in the international arena. Then these currencies can be much easier in circulation on the international markets!
The real meaning to Chinese exporting enterprises
The Yuan currency’s incorporated in to the SDR means that it will more used more and more popular in the international markets. As Chinese exporting enterprises, they concern exchanging rates every day, since they worry the rate may change greatly, and such changes may cause great losses. It is a very exciting thing to realize: Yuan can exchange with other currencies, without affecting from US dollar’s fluctuation, at least, it can reduce the risk of exchanges of the exporting enterprises.
From the point of foreign trading enterprises, with the rate of Yuan is more and more purported, the Yuan will become one of the mostly used currencies. After Yuan was incorporated to the SDR, we can provide our customers with more competitive prices so that they can use Yuan as trading term. It will greatly eliminate the risk of exchanging rate. In the mean time, both our country’s status and the competitiveness of all the exporting enterprises will be approved and improved.
As ordinary citizens, what will be the advantages?
If you go abroad usually, you can be impacted by importance of Yuan currency. No matter which country you were, if you were at the famous scenic spot, we can use our Union Pay Card for payment. Many tourist shopping spots marked in Chinese: “Yuan (RMB) is accepted”. Such kind of words greatly attract us shop more. We feel that, more and more, Chinese Yuan are more and more popular with many more countries, and which will surely have other countries to pay great attention to our China. No matter had you been to abroad or not, our international status in the world will be greatly improved. This is much meaningful to every China’s citizens.
Surely it will take time to witness the meaning that the Yuan was incorporated to the SDR! And it cannot change the structure of international currencies. But as a Chinese, I am really proud of it. Our influence in the world markets is becoming more and more obvious! The promotion of Yuan greatly relieves our worries of currency devaluation and puzzle of exchange rate. I am proud to be a Chinese!