The logic of RMB internationalization has changed. Although RMB internationalization has only gone through a short period of 1 1 year, it has achieved a lot. In recent years, some changes have taken place in the internationalization of RMB. In the early days of RMB internationalization, RMB was mainly used for international trade settlement between China and neighboring countries. During this period, the RMB generally continued to appreciate. From 2009 to 20 14, the RMB appreciated by nearly 40%. After China joined the WTO in 200 1, it quickly became the largest international trading country in the world, and promoted the international use of RMB from several billion yuan in 2009 to more than ten trillion yuan in 20 15. Along with this process, the international use of RMB has been continuously promoted.

But after 20 16, the logic of RMB internationalization has changed. First, the proportion of China's foreign trade import and export surplus in GDP has dropped from above 10% in the previous period to below 2%. Second, after the exchange rate reform of 2015 "8.11",the pressure of RMB depreciation is obvious. The depreciation pressure of 20 16 is very prominent. In the second half of 20 14, the media and academic circles are discussing whether the RMB exchange rate will "break 6" and enter the 5 th era; By the second half of 20 16, everyone was worried about whether the RMB would break 7 (see figure 1). Judging from the innovative development of business and the acceptance of RMB by the international community, the internationalization of RMB continued to advance during this period. At this time, the logic of RMB internationalization and the motivation of overseas market participants to accept, use, invest and hold RMB have actually undergone profound changes. The reason why more overseas market entities hold RMB has gradually changed from an early trade settlement tool to investing in value-added assets, forming RMB investment and reserve assets. Around 20 16, with RMB's entry into SDR, the People's Bank of China and the State Administration of Foreign Exchange issued a series of measures to open the domestic financial market. To make RMB an international reserve currency, we must first open the financial market and allow foreign central banks and sovereign wealth investors to enter the China market and buy financial assets denominated in RMB.

Generally speaking, RMB financial assets are very attractive. Take the yield of 10-year treasury bonds as an example. In most countries, this typical risk-free rate of return index is often the pricing benchmark of their financial markets and financial assets. At present, the yield of 10-year US Treasury bonds is about 0.91%; The yield of European 10-year bonds is zero or lower. For example, Germany is about -0.6%, and France is about -0.3%. Japan's index is usually around 0. In contrast, the return rate of China 10-year bonds is 3.3%. For overseas international investors, the yield of buying this basically risk-free 10-year treasury bond product in China is about 240 bp higher than that of investing in 10-year treasury bonds in the United States. If the yield of China 10-year treasury bonds exceeds 4% in 20 15 and 20 16, the spread will be even greater. As long as the market is open, a large number of foreign investors will come in to buy and hold RMB-denominated financial assets, so as to share the benefits of high return on RMB assets and the dividends of China's rapid economic growth.