Dongying is responsible for issuing invoices for accommodation fees [Consultation: Manager Wang Customer Service:] If the webpage cannot be opened, please click Baidu snapshot directly, 100% fidelity, payment after verification, price concessions, company-wide : Catering, hotel accommodation, transportation, services, advertising invoices, building decoration, handling, labor fees, service fee invoices, consulting fees, training fees, repair fees, processing and repairs, conference fees, catering quotas, and leasing. Industrial unification. Commercial unification [Fidelity] Price concessions can be verified. The International Monetary Fund [Weibo] recently released the annual Special Drawing Rights (Special Drawing Rights) Currency Basket Assessment Work Report. The three-page report mainly provides a preliminary assessment of the feasibility of including the RMB into the Special Drawing Rights currency basket to prepare for the five-year review to be conducted at the end of the year. This report identifies a number of areas for improvement that will help the Executive Board make its final decision. It also recommends that the agency extend the validity period of the current currency basket by 3 months to 3 months.
Special Drawing Rights Currency Selection Criteria and Evaluation Invoice
The evaluation report adopts the current selection criteria invoice of the Special Drawing Rights basket of currencies, namely export standards and free use standards (China: RMB and Month Day). China's issuing countries already meet the export criteria for inclusion in the SDR, so, not surprisingly, the preliminary assessment in this report focuses on meeting the second criterion.
A freely usable currency is defined as a currency that is widely used in the balance of payments for international transactions and is widely used for transactions in major foreign exchange markets. This definition does not equate to a freely floating exchange rate or a fully convertible currency. In practice, relevant assessments will be based on a series of quantitative indicators and the judgment of relevant personnel.
The assessment in the report uses four indicators approved by the Executive Board in the free use assessment in 2017: the proportion of currency holdings in foreign exchange reserves, international bonds () and international banking liabilities ( B) proportion, as well as the currency's transaction size (transaction volume) in the foreign exchange market. In addition, the assessment report also assesses several other indicators, including official foreign currency asset positions, international bond issuance, cross-border receipts and payments, and trade finance letters of credit. Preliminary assessment results are summarized in the table below.
Overall, this report recognizes the rapid development of RMB international use and transactions in recent years (albeit from a low starting point) and believes that this trend will continue. However, although the RMB ranks high among non-freely usable currencies, it does not perform well in all indicators (except for the two indicators of exports and trade finance). Its ranking still lags behind the four freely usable currencies in the current Special Drawing Rights currency basket.
This report highlights methodological issues when dealing with data related to Hong Kong, Macao and Taiwan in the assessment process. RMB transactions between Hong Kong, Macao and Taiwan or between them and the mainland should not be regarded as international transactions in the free use assessment. However, completely excluding these data would result in an underestimation of the extent of international use of the RMB, since a large proportion of the above-mentioned transactions are international transactions by non-residents. When conducting a detailed analysis of these agency issuance data, it is very difficult to distinguish international invoices from domestic transactions, and in some cases it is even impossible. The report recommends addressing this issue by treating each indicator individually, while acknowledging that further analysis is needed on this point.
Operational issues
The report pointed out that if the RMB is included in the Special Drawing Rights currency basket, there will be three main problems at the operational level.
First, how to determine the applicable exchange rate. The central parity rate in the onshore RMB market is considered not to be based on actual transactions in the market. The report indirectly pointed out that the People's Bank of China [Weibo] should further promote the reform of the exchange rate mechanism and the central parity rate of exchange rates should more accurately reflect market conditions.
Secondly, how to determine the applicable interest rate. The three-month Treasury yield is a possible choice, but its secondary market is relatively small. China's Ministry of Finance has promised to promote the regular issuance of three-month and six-month government bonds in the future.
Third, whether investors have the ability to hedge their RMB risk exposure. Products in both the offshore and onshore markets currently cover interest rate and exchange rate forwards, swaps, cross-currency swaps, and some options products, but liquidity remains a concern. Relevant Chinese authorities have recently relaxed restrictions on central banks, sovereign wealth funds, and international financial institutions from entering the onshore market, but the People's Bank of China is their designated agent in foreign exchange transactions. The Chinese government has expressed its intention to further relax restrictions on the use of currency hedging instruments.
Plan to extend the validity of the current currency basket by several months
The current Special Drawing Rights currency basket will expire at the end of this year. The International Monetary Fund assessment report recommends extending the validity of the current Special Drawing Rights currency basket by 3 months to 3rd year. The report explained that the reason for this recommendation was that SDR users expressed that May was not an ideal time to launch a new currency basket. In addition, if the Executive Board officially decides to include the RMB in the Special Drawing Rights before the end of this year, the extension will also provide users with an adaptation and buffering period to adapt to the adjustment in the composition of the currency basket.
The meeting will formally decide to include the RMB in the Special Drawing Rights before the end of this year. The extension also provides a period of adaptation and buffering period for users to adapt to the adjustment of the composition of the currency basket.
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