The renminbi share of global payments continues to rebound
发布日期：2024-07-31
The latest monthly report released by the Society for Worldwide Banking Financial Telecommunication (SWIFT) shows that in June this year, the renminbi accounted for 4.61% of the global payment currency ranking based on the amount of statistics, an increase of 0.14 percentage points from May, and ranked fourth in the world payment currency status for the eighth consecutive month. The yuan share of global payments almost doubled in June compared to November 2022, when it accounted for just 2.37 percent.
Since the launch of cross-border trade RMB settlement in 2009, the internationalization of RMB has developed over 10 years and shown great vitality. At present, nearly half of the total cross-border transactions conducted by Chinese financial institutions, enterprises and individuals are settled in renminbi. Nearly 1.5 trillion yuan has been deposited in the main offshore RMB market, and renminbi-denominated financial products are increasingly abundant. In May 2022, the International Monetary Fund further raised the RMB weighting in the SDR from 10.92% in 2016 to 12.28%, reflecting the international community high recognition of the achievements of the RMB market-oriented reform.
What is behind the accelerated internationalization of the renminbi? Guan Tao, global chief economist of Bank of China Securities, believes that, first of all, China has a huge volume of trade and investment, is the world largest commodity exporter, the second largest commodity importer, is a large country of foreign investment and foreign investment, and it is this close connection with the world economy that makes the overseas circulation and use of RMB greatly supported. The second is China commitment to responsible macroeconomic policies, which ensure the credibility of the renminbi. Third, China has accelerated the two-way opening of its financial market and the continuous improvement of the internationalization of the RMB capital account, which is conducive to attracting foreign investment to increase the allocation of RMB financial assets.
"At present, the extensive bilateral and multilateral currency cooperation has made the RMB international reserve function, use scenario and convenience continue to improve, the RMB offshore financing role is more prominent, and the RMB has returned to the world top four most active payment currencies, building confidence for foreign investment in Chinese bond assets." Wen Bin, chief economist at China Minsheng Bank. The latest data released by the State Administration of Foreign Exchange show that in the first half of this year, foreign investors increased their net holdings of domestic bonds by nearly $80 billion, the second-highest value in history for the same period.
Since the beginning of this year, the demand for RMB trade financing from overseas markets has increased, becoming a new engine driving the steady progress of RMB internationalization. The data show that the proportion of RMB in SWIFT global payments rose significantly in June, which is also related to the volatility of the global payment environment in the month. In June, the amount of global payments in all currencies decreased by 3.23% compared with the previous month, but the amount of yuan payments decreased by only 0.22% compared with the previous month, so that the proportion of yuan global payments increased correspondingly.
Some analysts believe that under the influence of the US Federal Reserve to maintain a high interest rate, more and more multinational enterprises and enterprises in emerging markets have tried to use RMB as a trade financing currency. Comparatively speaking, the fluctuation of RMB exchange rate is relatively stable, and the financing interest rate is significantly lower than that of US dollar.
In the view of many market participants, although the RMB exchange rate against the US dollar continued to fall in June, it did not affect the use of the RMB in the field of cross-border trade settlement continued to expand. The reason is that compared with the exchange rates of other emerging market currencies and developed countries such as the yen, the RMB exchange rate has remained strong and resilient, attracting more and more overseas enterprises to accept RMB in cross-border trade links.
Zhao Xueqing, a senior researcher at the Research Institute of the Bank of China, said that in the coming period of time, to continue to steadily promote the internationalization of the RMB, we can further improve the cross-border use policy system of the RMB, further improve the openness and access of the financial market, improve the liquidity of RMB financial assets, improve the offshore liquidity supply mechanism, and deepen monetary cooperation. It will play an active role in bilateral local currency settlement and currency swaps, seize the opportunities of energy transition and payment reform, and add new connotations to the internationalization of the RMB. (Article source: Economic Daily)
Since the launch of cross-border trade RMB settlement in 2009, the internationalization of RMB has developed over 10 years and shown great vitality. At present, nearly half of the total cross-border transactions conducted by Chinese financial institutions, enterprises and individuals are settled in renminbi. Nearly 1.5 trillion yuan has been deposited in the main offshore RMB market, and renminbi-denominated financial products are increasingly abundant. In May 2022, the International Monetary Fund further raised the RMB weighting in the SDR from 10.92% in 2016 to 12.28%, reflecting the international community high recognition of the achievements of the RMB market-oriented reform.
What is behind the accelerated internationalization of the renminbi? Guan Tao, global chief economist of Bank of China Securities, believes that, first of all, China has a huge volume of trade and investment, is the world largest commodity exporter, the second largest commodity importer, is a large country of foreign investment and foreign investment, and it is this close connection with the world economy that makes the overseas circulation and use of RMB greatly supported. The second is China commitment to responsible macroeconomic policies, which ensure the credibility of the renminbi. Third, China has accelerated the two-way opening of its financial market and the continuous improvement of the internationalization of the RMB capital account, which is conducive to attracting foreign investment to increase the allocation of RMB financial assets.
"At present, the extensive bilateral and multilateral currency cooperation has made the RMB international reserve function, use scenario and convenience continue to improve, the RMB offshore financing role is more prominent, and the RMB has returned to the world top four most active payment currencies, building confidence for foreign investment in Chinese bond assets." Wen Bin, chief economist at China Minsheng Bank. The latest data released by the State Administration of Foreign Exchange show that in the first half of this year, foreign investors increased their net holdings of domestic bonds by nearly $80 billion, the second-highest value in history for the same period.
Since the beginning of this year, the demand for RMB trade financing from overseas markets has increased, becoming a new engine driving the steady progress of RMB internationalization. The data show that the proportion of RMB in SWIFT global payments rose significantly in June, which is also related to the volatility of the global payment environment in the month. In June, the amount of global payments in all currencies decreased by 3.23% compared with the previous month, but the amount of yuan payments decreased by only 0.22% compared with the previous month, so that the proportion of yuan global payments increased correspondingly.
Some analysts believe that under the influence of the US Federal Reserve to maintain a high interest rate, more and more multinational enterprises and enterprises in emerging markets have tried to use RMB as a trade financing currency. Comparatively speaking, the fluctuation of RMB exchange rate is relatively stable, and the financing interest rate is significantly lower than that of US dollar.
In the view of many market participants, although the RMB exchange rate against the US dollar continued to fall in June, it did not affect the use of the RMB in the field of cross-border trade settlement continued to expand. The reason is that compared with the exchange rates of other emerging market currencies and developed countries such as the yen, the RMB exchange rate has remained strong and resilient, attracting more and more overseas enterprises to accept RMB in cross-border trade links.
Zhao Xueqing, a senior researcher at the Research Institute of the Bank of China, said that in the coming period of time, to continue to steadily promote the internationalization of the RMB, we can further improve the cross-border use policy system of the RMB, further improve the openness and access of the financial market, improve the liquidity of RMB financial assets, improve the offshore liquidity supply mechanism, and deepen monetary cooperation. It will play an active role in bilateral local currency settlement and currency swaps, seize the opportunities of energy transition and payment reform, and add new connotations to the internationalization of the RMB. (Article source: Economic Daily)
