Chinese peopleBankThe “Renminbi Internationalization Report 2021” released on September 18 gave the direction for the next phase of RMB internationalization.
The central bank stated that in the next step, it will steadily promote the internationalization of the RMB, coordinate development and security, adhere to the principle of responsiveness and “flow of time”, adhere to market-driven and independent choices by enterprises, and further improve the policy support system and infrastructure for the cross-border use of RMB Arrangements to promote the two-way opening of the financial market, develop the offshore renminbi market, create a more convenient environment for market entities to use the renminbi, and further improve cross-borderCash flowA dynamic and prudent management framework, strengthen the monitoring, analysis and early warning of cross-border capital flows, maintain the bottom line of no systemic risks, and better serve the new development pattern of “dual cycles”.
The “Report” pointed out that the cross-border use of the current account renminbi, which is an important basis for the internationalization of the renminbi, will be further expanded.
The signing of the Regional Comprehensive Economic Partnership Agreement (RCEP) will further promote the development of trade in the Asia-Pacific region and expand the use of RMB in trade and investment activities. The use of renminbi for bulk commodity trade has a certain foundation and is expected to continue to be a growth point in the cross-border use of renminbi.New trade formats such as cross-border e-commerce will enrich the use of RMB and increase the use of RMB in foreign trade.
The market survey on the international use of RMB in 2020 released at the same time in the “Report” shows thatApproximately 78.8% of domestic and foreign industrial and commercial enterprises surveyed considered using RMB in cross-border transactions or increasing the proportion of RMB use, which has increased compared with previous years.
In addition, renminbi cross-border investment and financing channels will also be further expanded.
The central bank stated that it will continue to promote high-level two-way opening of the financial market, enrich risk hedging tools, improve the facilitation of foreign entities’ allocation of RMB financial assets, and support foreign central banks,currencyThe authorities and reserve management departments allocate renminbi reserve assets to expand the renminbi’s reserve and investment currency functions. Promote the innovation of RMB cross-border investment and financing business around the construction of the free trade pilot zone (free trade port), the Guangdong-Hong Kong-Macao Greater Bay Area and the Shanghai International Financial Center.
Domestic financial market stocks and bonds have become the main varieties for overseas entities to allocate RMB financial assets.
In 2020,Stock investmentThe total amount of RMB cross-border receipts and payments was 16.50 trillion yuan, a year-on-year increase of 73.6%.Net inflow578.385 billion yuan.
At the same time, the RMB internationalization infrastructure will also be further improved.
The “Report” pointed out that the overseas RMB clearing bank system will be optimized to give full play to the role of RMB clearing banks in facilitating overseas RMB investment and financing, cultivating offshore RMB markets, and providing RMB liquidity support. Continue to strengthen the construction of CIPS to improve the security and efficiency of RMB clearing and settlement. Continue to improve the RMB cross-border receipt and payment information management system (RCSMEsS) Construction to further improve the information collection and statistical analysis functions of the RCPMIS system.
(Source: The Paper)
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