Original title: RMB ranks fifth among major international payment currencies——
Positive progress in RMB internationalization Source: People's Daily Overseas Edition
Beijing, September 26 (Reporter Xu Peiyu) The People's Bank of China recently released the report on the internationalization of RMB in 2021, which shows that in 2020, the function of the payment currency of RMB will be further strengthened, the function of investment and financing currency will be deepened, the function of reserve currency will rise, the function of pricing currency will have new breakthroughs, and the internationalization of RMB will make positive progress.
In 2020, the amount of cross-border collection and payment of RMB grew rapidly. The total amount of cross-border collection and payment of RMB by bank agents was 28.39 trillion yuan, up 44.3% year on year, and the amount of collection and payment hit a record high. The cross-border revenue and expenditure of RMB was generally balanced, and the accumulated net outflow throughout the year was 185.786 billion yuan. In the first half of 2021, the amount of RMB cross-border receipts and payments of bank agents totaled 17.57 trillion yuan, up 38.7% year on year.
The amount of cross-border RMB settlement related to the real economy such as current account and direct investment grew rapidly, and the use of RMB in important areas such as bulk commodities and ASEAN regions further increased. The RMB exchange rate became more flexible and two-way fluctuations became the norm. In order to avoid exchange rate risk, more market entities prefer to use RMB in cross-border trade and investment.
Foreign investors actively allocate RMB assets, and the use of RMB under capital accounts such as securities investment has become the main driving force for the growth of RMB cross-border revenue and expenditure. The report points out that China's economic fundamentals are good, its monetary policy remains in the normal range, the RMB has a high interest margin relative to major convertible currencies, and the RMB assets are more attractive to global investors. By the end of June 2021, the amount of financial assets held by overseas entities in domestic RMB stocks, bonds, loans and deposits totaled 10.26 trillion yuan, up 42.8% year on year.
According to the data released by the World Bank Financial Telecommunication Association, in June 2021, RMB ranked fifth among the major international payment currencies, accounting for 2.5% of the payment amount in all currencies, up 0.7 percentage points over the same period last year. In the first quarter of 2021, the RMB ranks fifth in the composition of the official foreign exchange reserves of the International Monetary Fund, accounting for 2.5% of the global foreign exchange reserves, 1.4 percentage points higher than when the RMB just joined the special drawing rights basket in 2016.
The People's Bank of China said that in the next stage, it will adhere to the principle of adapting to demand and "getting things done naturally", adhere to market driven and independent choice of enterprises, further improve the policy support system and infrastructure arrangements for cross-border use of RMB, promote two-way opening of financial markets, develop offshore RMB markets, and create a more convenient environment for market players to use RMB, At the same time, we will further improve the prudential management framework for cross-border capital flows, and hold the bottom line of no systemic risk.
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