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Financial Times client May 23 According to the news, recently, Chen Yulu, member of the National Committee of the Chinese People’s Political Consultative Conference, deputy director of the Economic Committee, and deputy governor of the People’s Bank of China, was interviewed by a reporter from the Financial Times on issues related to RMB internationalization. Chen Yulu said that at present, cross-border use of RMB continues to maintain rapid growth. In the next step, RMB internationalization will continue to be oriented to better serve international trade, investment and financing. The People ’s Bank of China will adhere to the principle of marketization, actively and proactively, and follow the trend to promote the full use of RMB as a global public goods.


Financial Times reporter: What progress has RMB internationalization made in the past year?

Chen Yulu: In recent years, the People ’s Bank of China has always insisted on serving the real economy, promoting trade and investment facilitation, and striving to meet the rising demand for RMB in the international market Gradually relax the restrictions on the cross-border use of RMB. Currently, the cross-border use of RMB continues to maintain rapid growth. In 2019, the cross-border receipts and payments of bank valet RMB totaled 19.7 trillion yuan, a year-on-year increase of 23%, and the receipts and payments reached a record high. This year, against the backdrop of the impact of the new crown epidemic on global trade, finance and economy, the cross-border use of RMB has remained resilient and showing growth. From January to April 2020, the RMB cross-border receipts and payments amounted to 830 million yuan, a year-on-year increase of 38%. Standard Chartered Bank’s newly released RMB Globalization Index (RGI) rose 2.6% month-on-month to 2224 in March, marking the third consecutive month of rise in the index.


Overall, the current development of RMB internationalization presents the following characteristics:

First, RMB cross-border capital flows are stable and orderly. From 2019 to the end of April 2020, the net inflow of RMB cross-border revenues and expenditures was RMB 276.8 billion, maintaining an overall balance. Affected by the outbreak of the global epidemic and financial market volatility, there was a staged net outflow of RMB cross-border revenue and expenditure in March. In April, as the global financial market stabilized, it has turnedFor net inflows.

Second, the cross-border RMB settlement of trade and direct investment has grown against the trend. Among them, from January to April 2020, the RMB cross-border receipts and payments of goods trade increased by 11% year-on-year, while customs imports and exports fell by 4.9% year-on-year. New breakthroughs have been made in the RMB settlement of commodities, and cross-border settlement of RMB has been realized between China Baowu and the world’s three largest iron ore suppliers.

Third, securities investment has become the main force driving the growth of cross-border use of RMB. From January to April 2020, cross-border RMB receipts and payments under securities investment increased by 63% year-on-year, accounting for nearly 60% of total RMB cross-border receipts and payments.

Fourth, RMB cross-border use policies are continuously optimized. Since 2019, it has launched a series of higher-level trade and investment facilitation pilots, while further optimizing the financial market opening related policy arrangements.

Fifth, the infrastructure is further improved. The RMB clearing bank system continued to expand, and CIPS became the main channel for RMB cross-border settlement.

Sixth, bilateral currency cooperation continues to deepen. Since 2019, it has signed or renewed bilateral local currency swap agreements with Australia, Turkey, Hungary, Soviet Union, Egypt, and the European Central Bank, and signed bilateral local currency cooperation agreements with Laos to continuously eliminate obstacles to the use of overseas RMB.


Financial Times reporter: What are the future plans of the People’s Bank of China to promote RMB internationalization?

Chen Yulu: After the RMB was added to the SDR currency basket in 2016, it was officially given the attributes of global public goods. Over the past few years, the function of the renminbi as an international payment currency has continued to increase, the investment and financing currency function has continued to deepen, the reserve currency function has gradually strengthened, and the pricing currency function has also been breakthrough. In the next step, RMB internationalization will continue to be oriented to better serve international trade, investment and financing. The People ’s Bank of China will adhere to the principle of marketization, actively and proactively, and follow the trend to promote the full use of RMB as a global public goods.

The first is to further promote the cross-border use of RMB, save costs and reduce risks in light of the current epidemic situation. Strengthen coordination with relevant departments, further improve the policy arrangements for cross-border use of RMB, explore and promote higher levels of trade and investment facilitation, and give full play to the positive role of cross-border use of RMB to help companies save transaction costs and reduce exchange rate risks. At the same time, further promote the international commodity renminbiPricing and settlement.

The second is to continue to promote the opening of financial markets to the outside world, and make full use of the RMB as a public reserve currency. Further facilitate foreign investors to use RMB to invest in domestic bonds and stocks, and actively attract medium and long-term passive investors to enter the market. At the same time, give full play to the function of RMB as an international reserve currency such as SDR basket currency to meet the growing RMB liquidity needs of the global market.

The third is to promote the pilot use of RMB across borders in key regions. In the Guangdong-Hong Kong-Macao Greater Bay Area, promote the establishment of a cross-border wealth management mechanism, study and promote the pilot of a pool of local and foreign currencies, support the construction of a cross-border transfer trading platform for Shanghai trade financing assets, and promote the formation of a high-level financial opening-up pattern for Hainan Free Trade Port.

Fourth is to guide the healthy development of the offshore RMB market. Improve the free use of RMB, provide necessary liquidity support, and promote the benign interaction and deep integration of offshore and onshore markets.

Five is to improve macro-prudential management. Strengthen the monitoring, analysis and early warning of cross-border capital flows, make reverse cycle adjustments, and prevent cross-border capital flow risks.

(Originally titled “Exclusive | Chen Yulu: Follow the trend and give full play to the function of RMB global public goods”)