It is of great significance, and the status of the RMB has improved.

1. After joining SDR, it means that the international status of RMB is constantly improving, which is an important step for RMB internationalization. It has enhanced the international influence of the RMB and will be used more and more in international trade, investment and reserves. In the future, China residents can directly use RMB for overseas travel, shopping and investment, so as to reduce exchange costs, avoid exchange rate risks and expand the scope of asset allocation.

2. With the globalization of RMB, the investment demand of overseas institutions and individuals for China assets will increase correspondingly, which means the diversification of investor structure and the enhancement of long-term purchasing power of China stock market and bond market.

3. Joining SDR will also help China gain pricing power in international commodity trading. In the past two decades, because China and other Asian countries have no pricing power, the prices paid by major Asian oil consumers to Middle East oil producers are higher than those of European and American countries that import crude oil from the same region 1 USD/barrel-1.5 USD/barrel. Shanghai Free Trade Zone decided to set up an international crude oil futures trading platform. If the RMB is not an international reserve currency, the recognition will be low. If it is priced in US dollars, it is not conducive to the influence of the crude oil trading platform in Shanghai Free Trade Zone. Once RMB becomes an international reserve currency, crude oil trading in Shanghai Free Trade Zone can be priced in RMB, and traders will take RMB price as an important basis for judging the market and future trading decisions.

4. RMB joining SDR will also help maintain the independence of the central bank's monetary policy. According to Mundell Triangle Theory, it is impossible for a country to maintain a fixed exchange rate, free flow and independent monetary policy at the same time, and it can only have both. For a big country like China, we must maintain an independent monetary policy and not be led by others. The only one of the three is to abandon the fixed exchange rate and adopt a floating exchange rate. Nevertheless, since RMB has joined SDR as an international reserve currency, other countries will also use RMB as their foreign exchange reserves, so the risk of exchange rate fluctuations is much smaller.