RMB internationalization makes remarkable progress: report

Updated 2017-10-20 16:02:56 Xinhua

There has been remarkable progress in global use of the renminbi (yuan), which is set to continue, according to a central bank report.

"The Chinese currency has taken steady steps on its global march and the yuan's use on the capital account has been liberalized steadily," said a People's Bank of China (PBOC) report.[Special Coverage]

"The growth of cross-border transactions using the yuan and increased international cooperation in the use of yuan have given a boost to the currency's rise as an international currency," the report said.

Trade using the yuan accounted for 1.94 percent of all transactions made through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) in August, the fifth most-traded currency on the platform.

China has been pushing the yuan's global use, as it looks to lower international trade transaction costs, which are mostly settled in U.S. dollars at present.

In a milestone for the yuan's internationalization, the currency joined the IMF Special Drawing Right basket in October last year, making it the fifth currency in the basket, joining the U.S. dollar, euro, Japanese yen and British pound.

Created by the IMF in 1969, the Special Drawing Right is an international reserve asset to supplement the official reserves of members. It can be exchanged among governments for usable currency in times of need.

Following the launch of the Shanghai-Hong Kong stock link in 2014, the Shenzhen-Hong Kong stock connect started trading in December 2016, gradually internationalizing the capital market.

A Bond Connect between the Chinese mainland and Hong Kong began this July, allowing investors from both sides to trade bonds on each other's interbank markets. Foreign institutions increased their holdings of yuan-denominated bonds by a record 82.6 billion yuan (about 12.4 billion U.S. dollars) in August.

The report said efforts were needed to enhance the yuan's role in investment, reserves and financial transactions.

It also emphasized the importance of enhancing risk prevention, with the central bank vowing to step up market supervision.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58December 15 2017 14:24:51

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16December 15 2017 14:24:51

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18December 15 2017 14:24:51

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords