On the occasion of the 40th anniversary of the School of Economics, the 2ed Lecture of Economics School 40th Anniversary Alumni Forum Was Successfully Held on May 29, 2019. At the invitation of the Alumni Association of Beijing Normal University and the Alumni Association of the School, Zhang Ming, researcher and doctoral supervisor of the Institute of World Economy and Politics, Chinese Academy of Social Sciences, as the guest speaker, gave a wonderful speech to the teachers and students of our School with the topic of "the strategic transformation of RMB internationalization: from the 'old trinity' to the 'new trinity'". Zhang Ming is the 99th undergraduate and the 2002nd master of our School. Qi Yudong, dean of the School, attended the event. The lecture was presided over by Ge Yuliang, deputy secretary of the sub-party committee and executive vice President of the Alumni Association.

Teacher Ge Yuliang addresses the lecture.

Zhang Ming gives a speech.

First of all, Zhang Ming introduced to the teachers and students the strategies of the People's Bank of China in the past ten years to promote the internationalization of RMB, namely the "old trinity" strategy, which is mainly reflected in encouraging cross-border trade and investment to use RMB for settlement, vigorously developing offshore RMB financial center, and signing bilateral currency swap with other banks.

Then, Zhang Ming used a lot of charts and data to vividly show the progress of RMB internationalization. He points out that the internationalisation of the renminbi, which was significantly strengthened between 2010 and 2015, has slowed down and even reversed somewhat since the third quarter of 2015. On this basis, Zhang Ming deeply analyzed the problems in the process of RMB internationalization. In his opinion, on the one hand, cyclical macro financial factors such as the reversal of RMB appreciation expectation, the tightening of interest rate differentials at home and abroad, the strengthening of capital outflow management, and the expected rise of domestic financial risks are all factors that affect the slowing down of RMB internationalization. On the other hand, the disadvantages of the "old trinity" strategy will slow down the process of RMB internationalization. First, it pays too much attention to the function of RMB as the settlement currency of cross-border trade and investment, but relatively ignores the function of developing RMB as the international settlement currency. Second, too much attention is paid to the development of RMB offshore financial center while relatively ignoring the real overseas demand of cultivating RMB. Third, the Chinese government promotes the internationalization of RMB before the full marketization of RMB interest rate and exchange rate formation mechanism, which leads to the popularity of cross-border arbitrage and carry trade.

Senior zhang Ming explained the trend of internationalization of RMB to teachers and students

Finally, Zhang pointed out that RMB internationalization has gone through a relatively complete cycle in the past decade, and a new cycle seems to be brewing in 2018. Its own long-term research on international finance and China's macroeconomic field experience, Zhang Ming is proposed in the past ten years of "trinity" old strategy that corresponds to the "new trinity" strategy, main show is to launch a yuan-denominated of crude oil futures market, increase the strength of the domestic financial market open to foreign institutional investors, the advance in the construction of "area" the yuan's valuation and settlement. Zhang Ming summarized the advantages of "new trinity" strategy in promoting the internationalization of RMB. He said that the "new trinity" strategy pays more attention to cultivating the function of RMB as a denomination currency, more attention to providing non-residents with richer financial assets denominated in RMB, and more attention to cultivating real overseas demand for RMB. Therefore, the process of RMB internationalization in the future will be driven more by real demand than arbitrage activities, thus becoming smoother and more sustainable.

Students are actively raising their questions.

After the report, more than 10 students and teachers had extensive and in-depth discussions with Zhang Ming on the internationalization of the RMB, Sino-US trade frictions, the direction of the monetary policy of the people's bank of China, inflation and other macroeconomic issues, and all of them said that they benefited a lot. In the end, teacher Ge Yuliang gave the closing speech, highly praised and thanked Zhang Ming for his speech. This lecture is the opening lecture for the Alumni Forum of the School, and the Association will hold several lectures in succession.

About Zhang Ming:

Zhang Ming (master degree holder of the 2002, and 1999 undergraduate in BNU’s Business School), researcher, doctoral supervisor, director of the Institute of World Economics and Politics at the Chinese Academy of International Investment Research, selected as one of the first batch of top young talents of the National Ten Thousand Talent Program (2013), the second China young financial scholars of the China Finance Museum (2013), the young economist of the Beijing News (2014), and the outstanding communist party member of the central government organs (2016). The research project he presided over was selected into the annual major research results of innovation engineering of Chinese Academy of Social Sciences for four times and has won the first prize of excellent national think tank report for three times, the annual outstanding countermeasure information award of Chinese Academy of Social Sciences for eight times, and the first and third prizes of excellent research results of national development and reform commission. Main social part-time job: member of the advisory committee of industrial economic analysis experts of the Ministry of Industry and Information Technology; Senior adviser, International Economic Relations Division, Treasury; Member of expert committee of CCPIT; Director of Youth Committee of China World Economic Association; China chief economist FORUM director.