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RMB Internationalisation Report

RMB expands global reach: Growth in cross-border and offshore use despite challenging international financial conditions

November 2023

China Construction Bank, in collaboration with The Asian Banker, has undertaken an extensive global survey to analyse the international adoption and use of the Renminbi (RMB) in cross-border trade settlement, cash management, investment, and financing. This comprehensive report not only presents the current trends in RMB’s global usage but also explores the development of the RMB financial market and the status of offshore RMB centres.

Additionally, the report offers valuable insights into how various institutions incorporate RMB into their cross-border transactions and shares their perspectives on the future trajectory of RMB use. Notably, this year’s report focuses on the use of RMB by institutions located in the 152 Belt and Road Initiative (BRI) countries, including China, as of April 2023. It provides a deep understanding of the emerging opportunities, challenges, and prospects associated with the internationalisation of the RMB.

Key findings from the survey reveal that cross-border RMB trade settlement remains the most widely used product, with substantial growth observed in RMB cash management among both financial institutions and corporations. The role of the RMB as a financing currency has significantly strengthened, with Chinese companies and financial institutions leading the way in adopting RMB-based trade settlement. In contrast, overseas corporations predominantly adopt RMB for cash management purposes. Furthermore, the RMB is increasingly becoming an integral part of cross-border trade contracts for both Chinese and international corporations. It’s worth noting that the ongoing expansion of RMB’s international usage is influenced by geopolitical tensions and global macroeconomic factors.

The report is available as a single document in PDF format, encompassing both English and Chinese versions, spanning a total of 110 pages.

01  Key developments in RMB internationalisation

  • 1.1 Emerging policies and arrangements that support RMB internationalisation
  • 1.2 Role of RMB and the increased use of local currencies in cross border transactions

02  Status, impact and changes in RMB cross-border payments and settlement

  • 2.1 Use of RMB-based cross-border products
  • 2.2 Use and status of RMB in cross-border trade
  • 2.3 Use and status of RMB in cross-border direct investments
  • 2.4 RMB assets held by overseas institutions
  • 2.5 RMB cross-border payment and settlement

03  Status, impact and changes in the RMB financial market

  • 3.1 Changes in the RMB financial market
  • Special Column 1: The HKD-RMB Dual Counter Model and its impact on international usage of RMB
  • 3.2 Developments in RMB financing market
  • 3.3 Developments in RMB currency exchange transactions
  • 3.4 Developments in RMB-denominated derivative market
  • Special Column 2: The new interest-rate Swap Connect and its impact

04  The development of RMB in BRI countries

  • 4.1 Use of RMB cross-border products in BRI countries
  • 4.2 Use of RMB in cross-border trade and investment with BRI countries
  • 4.3 Cross-border RMB payment and settlement in BRI countries
  • Special Column 3: Cross-border payment technology development and its impact on usage of RMB in BRI countries

05  The development of offshore RMB centres

  • 5.1 Use of RMB in regions outside China
  • 5.2 Use and change of RMB offshore deposits
  • 5.3 Development of offshore RMB wealth management market
  • 5.4 Use and change of key offshore RMB centres

06  Emerging opportunities, challenges and future prospects of RMB internationalisation

  • 6.1 Main factors affecting the use of RMB
  • 6.2 Implementation of e-CNY
  • 6.3 Main challenges
  • Financial institutions aiming to leverage the latest trends in the international adoption of RMB and shape their RMB-based product strategies in areas such as cross-border payments, investments, and financing.
  • Global corporations keen on identifying emerging patterns and future prospects in RMB internationalisation, which can significantly influence their business strategies in cross-border trade and transactions.
  • Researchers and analysts from diverse backgrounds, including financial institutions, regulatory bodies, government agencies, external consulting firms, and more.

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