Renminbi crosses major milestone in internationalization

Updated: Sep 4, 2023 By Zhou Lanxu Print
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A worker counts Chinese currency renminbi at a bank in Linyi, East China's Shandong province. [Photo/Xinhua]

The renminbi's share in global payments has exceeded 3 percent for the first time in July, marking a latest milestone in the currency's internationalization, said Jin Zhongxia, head of the International Department of the People's Bank of China, the country's central bank.

Renminbi settlements accounted for 24 percent of the country's trade in goods in the January-July period, while overseas entities allocated 9.8 trillion yuan ($1.34 trillion) worth of renminbi assets by the end of June, Jin said at the China International Finance Annual Forum 2023 held in Beijing on Sunday.

The renminbi is making "steady progress" in enhancing its status as an international currency, Jin said, adding that it now ranks as the fifth-biggest currency for foreign reserves, payments and transactions as well as the third-largest trade financing currency.

The country's financial sector opening-up has also borne more fruits as more than 110 foreign-funded financial institutions have been established in China since 2018, Jin said, making China the country that has seen the biggest improvement in financial sector opening in recent years when measured by an index compiled by the Organisation for Economic Co-operation and Development.

Jin said the PBOC will promote financial sector opening-up at a higher standard by improving the "Pre-establishment National Treatment" and "Negative List" regulatory model, optimizing the business environment and enhancing the regulatory capacity to manage the risks associated with wider opening-up.

He added that the total amount of renminbi bonds and A shares held by overseas investors each reached 3.3 trillion yuan by the end of June.

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