Central Bank Report Shows Steady Growth in the Use of RMB in Commodity Trade
Economic Daily, Beijing, September 18 (Reporter Yao Jin) The "2021 RMB Internationalization Report" released by the People's Bank of China on the 18th shows that in 2020, the cross-border RMB receipts and payments in the field of commodity trade will grow rapidly.
The cross-border renminbi receipts and payments of crude oil, iron ore, copper, soybeans and other commodities trade in the whole year amounted to 252.566 billion yuan, a year-on-year increase of 16.4%.
Specifically, in the field of iron ore trading, at the beginning of 2020, China Baowu successively achieved cross-border settlements in RMB with the world’s three major iron ore suppliers, with a total amount of more than 500 million yuan; in August, Ansteel Group and the world’s three major iron ore suppliers Australia's Rio Tinto Group, one of the stone suppliers, realized the RMB settlement of imported iron ore with an amount of 100 million yuan.
The demonstration effect of renminbi-denominated settlement in iron ore trade has initially appeared, but the overall renminbi cross-border receipt and payment in the bulk commodity sector is still at a relatively low level.
The report also shows that as of the end of 2020, the total amount of financial assets such as domestic RMB stocks, bonds, loans and deposits held by foreign entities totaled 8.98 trillion yuan, a year-on-year increase of 40.1%.