China group to improve the international financial architecture of the twenty program

Improving the international financial structure has been an important issue for the group of twenty (G20) summit. China served as chairman of the G20, homeopathy and restart the international financial architecture working group, with all parties to work together to improve the international financial architecture. After nearly a year of intensive communication and discussion, in July 2016 Chengdu finance ministers and central bank governors meeting, the G20 has formed the towards a more stable, more resilient international financial architecture of the G20 agenda ", around the expansion of the SDR use, strengthen the global financial safety net, promote the International Monetary Fund (IMF) quota and governance reform, perfect sovereign debt restructuring mechanism and improve the monitoring and management of capital flows and other five aspects put forward a series of suggestions, for in Hangzhou summit of G20 to improve the international financial architecture with & amp; ldquo; scheme of China & amp; rdquo;. Br; /> <
& nbsp; & nbsp; & nbsp; active and promising, restart the international financial architecture working group < /> br;
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& nbsp; & nbsp; & nbsp; the global financial crisis broke out in 2008, highlighting the inherent defects of the international monetary system and the need to improve the global financial architecture. The people's Bank of China Governor Zhou Xiaochuan at the G20 summit in London on the eve of the publication of the article "the thinking on the reform of the international monetary system", proposals to reform and perfect the existing international monetary system, emphasizing full play to the role of the SDR (Special Drawing Rights), stimulate the lively discussions on the reform of the international monetary system of the international community. Thereafter, the G20 continued to promote the reform of the international monetary system, made a number of progress, including successfully in 2009 and 2012 two rounds of IMF resources, the completion of a total of $250 billion SDR allocation, enhance the capability of crisis assistance; to promote the success of the International Monetary Fund (IMF) 2010 Vintage amount and governance reform, a substantial increase in the emerging markets and developing countries speak right and representative. Br; /> <
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& nbsp; & nbsp; & nbsp; France in 2011 as the G20 presidency, the international monetary system reform as the main push issues, and the establishment of a working group called the international financial architecture of the working group. In March of that year, China and France jointly held in Nanjing & ldquo; G20 international monetary system seminar rdquo; & when he was president of France, Sarkozy made a special trip to Nanjing to the participants. However, the second half of 2011 after the European debt crisis, the international community's attention focused on coping with the crisis, the discussion on the international financial architecture has been diluted. Since then, due to the slow implementation of the IMF share and governance structure reform in 2010, coupled with the lack of a component of the country to promote the G20 international financial architecture working group also interrupted in 2014. Br; /> <
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& amp; nbsp; & amp; nbsp; & amp; nbsp; since 2015, with RMB entering the SDR basket process, China and the major powers in the international monetary system reform problems were in-depth communication, states generally expect China on this important issue, continue to play a leading force. Last year President Xi Jinping visited the United States during the leaders of the two countries specifically on the reform and development of the international monetary system reached a number of important consensus, stressed that the international financial architecture is evolving to cope with in scale, scope and diversity are challenges in changing, the United States welcomes Chinese in the international financial architecture play a more active role, to cope with the challenges of the global economy. At the same time, monetary policy in the major reserve currency countries appear differentiation, the emergence of a global capital flows and exchange rate fluctuations, the G20 countries especially in emerging market countries also have strong willingness to strengthen the discussion on the international financial architecture, to promote the necessary reform. China made a correct assessment of the situation, take the initiative to plan and will improve the international financial architecture as the key topics of the G20 this year, under the support of G20 countries to restart the international financial architecture working group. Br; /> <
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& amp; nbsp; & amp; nbsp; & amp; nbsp; working group after the restart, conform to the French continued in 2011, Nanjing seminar mechanism are looking forward to, the people's Bank of China and the French Ministry of Finance in 2016 march in Paris jointly organized the second G20 international financial architecture high level seminar, also known as & amp; ldquo; from Nanjing to Paris: international financial architecture high level seminar & amp; rdquo;, governor Zhou Xiaochuan in comprehensive systematically describes the consideration on the international financial architecture working group topics and ideas, the participants were lively and fruitful discussions, to discuss the next G20 has laid a solid foundation. Br; /> <
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& nbsp; & nbsp; & nbsp; Duocuobingju, expanding the use of SDR < br />
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& nbsp; & nbsp; & SDR; IMF is a supplementary reserve asset created in 1969 to ease the inherent risk of relying on a single sovereign currency. However, due to the limitation of the distribution mechanism and the scope of use, the role of SDR has not been fully played. The outbreak of the global financial crisis once again exposed the inherent defects in the international monetary system, also led to the international community for the enhancement of the role of SDR positive discussion, the Cannes summit to enhance the representativeness of the SDR currency basket put forward specific requirements. Br; /> <
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& amp; nbsp; & amp; nbsp; & amp; nbsp; with the rapid development of China's financial sector continues to open up and the internationalization of RMB, RMB on November 30, 2015 successfully joined the SDR basket, this is what the international community of the RMB as a reserve currency authority recognized also increase the SDR's representative and attractive. China served as president of the G20, and G20 parties to actively promote the expansion of the use of SDR. Br; /> <
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& nbsp; & nbsp; & nbsp; because the SDR currency basket is more stable than the single currency, it can reduce the impact of exchange rate volatility, SDR as the report currency will make the asset value and other statistical data more objective. In fact, many international financial institutions have used SDR as a reporting currency. therefore, China and the G20 countries to actively explore the benefits of SDR as the reporting currency. With mid April Washington G20 finance ministers and central bank governors meeting, China's rate in the early April 2016 and at the same time in the U.S. dollar and SDR released the foreign exchange reserve data, played a good role model. With the July Chengdu finance ministers and central bank governors meeting, China and the end of June 2016 released in the U.S. dollar and SDR as the report currency of the international balance of payments and international investment position data, to obtain a positive response. Br; /> <
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& nbsp; & nbsp; & nbsp; SDR bond in 70s and 80s twentieth Century was the rise, but the impact of a variety of factors could not be sustained development. Because SDR bonds can reduce exchange rate and interest rate risk, to provide a diversified asset allocation, the RMB to join the SDR currency basket to stimulate the interest of all sectors of the SDR bond new. China from the convenience of SDR bonds issued to start, and actively promote the cultivation and development of the SDR bond market. Recently, the world bank has been approved to SDR bond issuance market between banks, bonds will be issued first before the Hangzhou summit in September. At present, G20 countries have supported the role of the expansion of the role of SDR to form an important consensus, including more use of SDR as a report currency and the development of the SDR bond market to further improve the current international monetary system. Br; /> <
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& nbsp; & nbsp; & nbsp; innovative breakthrough, strengthen the global financial safety net < /> br;
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& amp; nbsp; & amp; nbsp; & amp; nbsp; since 2015, global capital flow volatility, emerging and developing economies generally face the pressure of capital outflows, in this context, perfect to the IMF as the core of the global financial safety net has important practical significance. Br; /> <
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& amp; nbsp; & amp; nbsp; & amp; nbsp; global financial safety nets including multiple levels: global, regional, bilateral and the country's own reserves, facing the main problem is not the overall resource shortage, but between the various levels of the lack of the coordination of resources, difficult to integrate. In this context, China as the IMF's three members and the Chiang Mai Initiative multilateralization (cmim) is one of the largest contribution to the country, and the G20 parties collaboration to promote coordination and cooperation between the IMF and regional financial arrangements. Use this year I served as the dual identity of ASEAN plus China, Japan and the ROK cooperation mechanism (10 + 3) presidency and the G20 and contribute to the success of the IMF and the cmim in September this year to carry out joint rescue exercises, the effects of both in crisis relief coordination problems. Joint exercise initiative to obtain a positive response, G20 called on other regional financial arrangements and IMF to carry out similar cooperation, improve the effectiveness of the global financial safety net. Br; /> <
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& nbsp; & nbsp; & nbsp; multi mediation, protect IMF resources, improve the share and governance structure br; /> <
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& amp; nbsp; & amp; nbsp; & amp; nbsp; January 2016, which lasted five years long IMF 2010 reform finally entered into force, the voice and representation of emerging markets and developing countries can be greatly improved, the share of China's ranking rose from sixth to third place. On this basis, countries began to discuss how to promote the next step of reform, that is, to complete the fifteenth share of the total inspection. Br; /> <
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& nbsp; & nbsp; & nbsp; due to the implementation of the reform program in 2010, some countries reform the power shortage, the parties to share the formula and other technical problems are obvious differences. In the face of the complicated situation, the people's Bank of China and the IMF to carry out technical consultations, strengthen coordination with the parties. G20 parties are currently on the completion of a total of fifteenth times the share of the reasonable arrangement of time and improve the share of emerging markets and developing countries in the reform direction of the negotiations, the next step in the clear direction of reform. Br; /> <
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& nbsp; & nbsp; & nbsp; on the other hand, the uncertainty of the global economy is rising, the need to maintain the adequacy of IMF resources. In this context, China and the IMF and G20 countries are on the issue of IMF resources intensive communication and coordination to ensure the ability of IMF to respond to the economic and financial crisis. Br; /> <
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& nbsp; & nbsp; & nbsp; efforts to promote, improve the sovereign debt restructuring mechanism br; /> <
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& nbsp; & nbsp; & nbsp; orderly sovereign debt restructuring is essential to the maintenance of financial stability and the protection of the interests of creditors. China has become the world's major creditor countries, improve the sovereign debt restructuring mechanism in line with China's vital interests. Therefore, China based on the current situation and problems of sovereign debt, targeted design issues and results. Br; /> <
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& amp; nbsp; & amp; nbsp; & amp; nbsp; a few years ago, due to Argentina's sovereign bonds without collective action clauses and other issues, to the & amp; ldquo; vulture funds & amp; rdquo; minority creditors interference the sovereign debt restructuring provides the opportunity, causing the economic and financial turmoil. In order to avoid a repeat of the similar problems, G20 parties to actively promote in sovereign bonds introduced to strengthen the collective action terms and coequal terms. At present, the introduction of the above-mentioned provisions in the new issue of bonds has made positive progress, China has played an exemplary role. May 26, 2016, China's Ministry of Finance in London issued 3 billion yuan bonds on the strengthening of the collective action clause. Br; /> <
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& nbsp; & nbsp; & nbsp; in recent years, the status of emerging market countries to enhance the creditor significantly, the official financing structure is also changing. Paris club as the main coordination mechanism of the world's official creditors, but also constantly adapt to the needs of the new situation. Currently, G20 parties have expressed support for the Paris club to discuss a series of sovereign debt issues, and continue to absorb more emerging countries. In July 2016 South Korea officially joined the Paris Club, the G20 has welcomed and in July Chengdu finance ministers and central bank governors meeting, the & amp; ldquo; welcome China regularly participate in meetings of the Paris Club, and China play a more constructive role will, including further discussion of potential members of the identity issues rdquo; & made a unanimous statement. Br; /> <
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& nbsp; & nbsp; & nbsp; actively respond to the improvement of the capital flow monitoring and risk prevention < /> br;
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& amp; nbsp; & amp; nbsp; & amp; nbsp; in the U. S. Federal Reserve interest rate hike, the British back Europe bring uncertainty leads to increased volatility in the financial market background under, emerging and developing economies generally face capital outflows, sharp exchange rate fluctuations and other issues. From the perspective of crisis prevention, early identification and early warning of risk is very important. Therefore, the G20 commitment to constantly improve on capital flows and risk response, and has taken measures to improve the monitoring of capital flows, including strengthening data collection, to fill the gap in the data, the early identification of risk caused by volatile capital flows. IMF will also summarize the experience and integration of capital flows management and macro Prudential policy research, to provide a reference for the country to resolve macroeconomic and financial risks. Br; /> <
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& amp; nbsp; & amp; nbsp; & amp; nbsp; in the past nearly a year's time, China actively plotting and pragmatic manner. Together with the parties to the G20, to open up the new pattern of the international financial architecture to improve. Believe that the Hangzhou summit will draw a new blueprint of international financial architecture is more stable and more resilientIn the history of the G20, leaving thick and heavy in colours of a pen. Br; /> <