China News Service, Beijing, October 10 (Xinhua) -- According to the "27 RMB Internationalization Report" released by the People's Bank of China on the 27th, data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) showed that at the end of 2023, the RMB accounted for 2022.3% of global trade finance, up 91.1 percentage points year-on-year, ranking third. In September 9, the renminbi accounted for 2023.9% of global trade finance, up 5.8 percentage points year-on-year, ranking second.
According to the report, since 2022, the People's Bank of China has adhered to the general tone of seeking progress while maintaining stability, adhered to reform and opening up and mutual benefit and win-win results, coordinated development and security, promoted RMB internationalization in an orderly manner, and served the construction of a new development pattern and high-quality economic development. For example, cross-border RMB business has enhanced its ability to serve the real economy, improved the function of RMB financing currency, and made offshore RMB market more active.
The report mentions that in 2022, the People's Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) signed a standing swap agreement and expanded the scale of fund swaps to further deepen financial cooperation between the mainland and Hong Kong. Since 2022, new RMB clearing banks have been set up in Laos, Kazakhstan, Pakistan and Brazil, and the overseas RMB clearing network has been continuously optimized. At the end of 2022, the balance of RMB deposits in major offshore markets was about 1.5 trillion yuan, returning to a record high.
According to the report, in the next stage, the People's Bank of China will adhere to the market-driven and independent choice of enterprises to promote the internationalization of the RMB in an orderly manner. Focusing on trade and investment facilitation, we will further improve the institutional and infrastructure arrangements for cross-border RMB investment and financing, transaction settlement, etc., accelerate the transformation of the financial market to institutional opening-up, build a more friendly and convenient investment environment, deepen bilateral monetary cooperation, support the healthy development of the offshore RMB market, and promote the formation of a virtuous circle between the onshore and offshore RMB markets.
At the same time, we will improve the macro-prudential management framework for cross-border capital flows that integrate domestic and foreign currencies, improve risk prevention and control capabilities under opening conditions, and maintain the bottom line of preventing systemic risks. (ENDS)