On July 9, Zhang Ming, deputy director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, delivered a keynote speech on the evolution of the international monetary system and the internationalization of the RMB at the 6th “Smart China Europe Beijing Forum” hosted by the China-Europe International Business School. Zhang Ming believes that the current dollar standard system has three major flaws: the broad “Triffin dilemma” continues to be highlighted, and there is a contradiction between providing sufficient dollar liquidity to the world and the stability of the US dollar exchange rate; the spillover effects of the Federal Reserve's monetary policy are remarkable, and the shift in monetary policy has had a direct impact on emerging markets; and “weaponization of the dollar” is frequent, and many unilateral sanctions seriously weaken the credit of the US dollar system. Countries are speeding up de-dollarization and coping with changes by increasing local currency holdings, laying out digital currencies, and building new payment and settlement systems. Zhang Ming stressed that this is the strategic window for the internationalization of the renminbi — many countries around the world are beginning to reduce their holdings of US dollar assets and seek alternative safe assets and new channels of settlement. China should take the initiative to seize this historical opportunity.

On July 9, Zhang Ming, deputy director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, delivered a keynote speech on the evolution of the international monetary system and the internationalization of the RMB at the 6th “Smart China Europe Beijing Forum” hosted by the China-Europe International Business School. Zhang Ming believes that the current dollar standard system has three major flaws: the broad “Triffin dilemma” continues to be highlighted, and there is a contradiction between providing sufficient dollar liquidity to the world and the stability of the US dollar exchange rate; the spillover effects of the Federal Reserve's monetary policy are remarkable, and the shift in monetary policy has had a direct impact on emerging markets; and “weaponization of the dollar” is frequent, and many unilateral sanctions seriously weaken the credit of the US dollar system. Countries are speeding up de-dollarization and coping with changes by increasing local currency holdings, laying out digital currencies, and building new payment and settlement systems. Zhang Ming stressed that this is the strategic window for the internationalization of the renminbi — many countries around the world are beginning to reduce their holdings of US dollar assets and seek alternative safe assets and new channels of settlement. China should take the initiative to seize this historical opportunity.