Sun Xiaoxia: Consider Seeking Diversification of Reserve Assets and Promoting the Internationalization of the Renminbi

Source: CBGG   

Published: 2022-4-29

On April 23, 2022, the Academic Seminar on the Impact of US-European Financial Sanctions on Russia and the World and the Reform of the International Monetary System, jointly organized by the Center for BRICS and Global Governance (CBGG) and the World Finance Forum(WFF), was held in Beijing. Sun Xiaoxia, Academic Member of CBGG and WFF, Chairman of National Debt Association of China, attended the seminar and delivered a keynote speech.

Sun Xiaoxia said that the Russia- Ukraine conflict and the U.S.-European financial sanctions will promote the diversified development of the international monetary system, making the role of non-dollar sovereign currencies more significant in the international monetary system. The move to replace the U.S. dollar and euro have seen much progress in recent years. In the future, the establishment of a diversified international monetary system jointly supported by the U.S. dollar, euro, RMB, the British pound and the Japanese yen will be the reform direction of the international monetary system, including the diversification of reserve assets. In the past, the diversification of reserve assets was to increase investment returns, but now we have to guard against political risks too. For foreign exchange reserves, more important thing is security and liquidity. More considerations should be given to put security above profitability.