China sees growth in cross-border RMB use

The Chinese currency renminbi (RMB), or the yuan, has been increasingly accepted in cross-border transactions in the first half of this year with payments and receipts maintaining a balanced level, a report from the China Banking Association showed.

From January to June, cross-border RMB receipts and payments totaled 12.67 trillion yuan (around$1.84 trillion), up 36.33 percent year-on-year, said the report.

Of the total transactions, cross-border RMB payments came in at 6.36 trillion yuan, while cross-border RMB receipts accounted for 6.31 trillion yuan.

By the end of June, the RMB's share in global payments stood at 1.76 percent, making it the world's fifth most important payment currency.

The RMB's share in global payments fluctuated in early 2020 due to the impact of the COVID-19 epidemic, but it has recovered as commercial banks enhanced service in RMB settlement after the epidemic tapered off and production resumed, the report said.

The internationalization of the RMB is facing challenges stemming from the changing global landscape and downward pressure on the economy, it said, calling for further improvement in financial infrastructure to support cross-border RMB settlement.