Internationalization Of RMB Into "Fast Lane"

Since June this year, the central bank has made frequent efforts in the construction of the global clearing network, signed 5 memorandum of understanding on RMB clearing arrangements, covering many places in Europe, including London, Frankfurt, Paris, Luxemburg, and South Korea in Asia.

At present, the clearing banks in these areas have been fully determined.

Although the global layout of RMB clearing has made many insiders shout "fast", it is still far behind the growth rate of RMB cross-border settlement.

The latest data from the central bank showed that in August, the RMB settlement business of cross-border trade occurred 457 billion 200 million yuan, and the direct investment in RMB settlement business occurred 58 billion 700 million yuan.

Data from the global Interbank Financial Telecommunication Association (SWIFT) show that in August, the amount of RMB settlement accounted for 1.57%, and continued to consolidate the seventh place in the global payment currency.

At the same time, China's commercial banks' overseas business grew rapidly in the first half of the year, and overseas competition became increasingly fierce. Internationalization became an important strategic layout of all banks.

In the first half of this year, the bank handled cross-border RMB payment and clearing business 112 trillion yuan, an increase of 98.7% over the same period last year.

ICBC's cross-border RMB business volume increased by more than 70% in the first half of last year.

"RMB clearing has initially been woven into the global network."

Li Jianjun, a senior researcher at Bank of China International Financial Research Institute, believes that this greatly improves China's economic influence and effectively reduces the pressure on foreign exchange reserves. Enterprises can avoid exchange rate risks through cross-border RMB settlement.

At present, three major industries, including China, Frankfurt and China, have already owned clearing banks in Europe. Among them, the Bank of China is the "next city" after Paris.

As a clearing bank for the RMB business in Seoul, it is an important step to build the RMB offshore center in Seoul.

Li Jianjun said that the internationalization of RMB is not a pnational of RMB. It needs more people to support and understand RMB. The acceptance level of the world is relatively weak, and it is necessary to establish offshore RMB center in different physical locations.

However, the internationalization of RMB is a long way to go. There are still many thorns to be swept away.

Experts pointed out that from a security point of view, it is urgent to build a unified clearing system to monitor the flow of RMB and what pactions have been made through the renminbi, which is very important for financial security.

"RMB in

Huge capital pactions need technical support, and clearing system is the backstage guarantee for RMB internationalization. Only when our country has its own liquidation system, can financial security be in its own hands.

Li Jianjun said.

Zhang Monan, an associate research fellow, said that in order to become an international currency, the Renminbi should first become a trading currency, followed by the completion of valuation and settlement functions, and finally the function of reserve currency.

"At present,

The international road has just entered the second stage, mainly carrying out the construction of settlement service network.

In the future, we need to gradually eliminate the short board of valuation and reserve, and further promote the internationalization of RMB.

Zhang Monan said.