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1、In the year 2023,China maintained sound momentum in growth,expanding by 5.2%in the year and contributing more than 30%to global growth.The total value of import and export of goods amounts to RMB41.7 trillion,accounting for 14.2%of the world total,flat with a year ago.The sound economic fundamentals

2、 have injected confidence and impetus into domestic and overseas market entities who expanded the use of RMB in the cross-border transactions.In order to provide an accurate picture of RMB internationalization and help further expand and enhance the cross-border use of RMB,Bank of China has collecte

3、d opinions and feedbacks on RMB internationalization from domestic and overseas market entities for 11 consecutive years.From the feedbacks in 2023,domestic and overseas industrial and commercial enterprises and overseas financial institutions continued to extend positive comments on RMB internation

4、alization in 2023,showing improvements in the inclination to use RMB,the assessment of the function of RMB as international currency and the expectation on the status of RMB as international currency compared with the questionnaire survey results in 2022.The cases where RMB was used by domestic and

5、overseas industrial and commercial enterprises further demonstrated a positive atmosphere that the cross-border use of RMB improved cross border trade and investment facilitation and provided high-quality service for the real economy.Preamble13Market data further confirms the positive trends in RMB

6、internationalization.In 2023,Chinas cross-border RMB settlements exceeded RMB52.3 trillion,a year-on-year increase by 24.1%.In the first 9 months,RMB receipts and payments under cross border trade accounts for 24.4%of the total receipts and payments under cross border trade,which is a year-on-year i

7、ncrease by 7 percentage points.In December of 2023,the share of RMB in global payments and settlements reached 4.14%,an increase by 2.23 percentage points over January.Cross-border RMB settlements in RCEP and Jointly Build the Belt and Road countries maintained rapid growth.The increasingly internat

8、ionalized RMB has shown greater vitality in serving Chinas higher-standard opening up to the outside world.As the main banking channel for the cross-border use of RMB,Bank of China helps advance RMB internationalization in a steady,prudent and solid manner.In 2023,the domestic and overseas instituti

9、ons of Bank of China completed cross-border RMB settlements for more than RMB57 trillion,an increase by 85.6%year-on-year,finished cross-border RMB clearing of RMB938 trillion,a year-on-year increase by 26.6%,and handled personal cross-border RMB settlements of RMB52.9 billion,up by 142.1%year-on-ye

10、ar,maintaining a leading edge over other banks.At present,the international currency system shows a faster pace of diversification,and business entities have growing intrinsic demand for cross border use of RMB in a complicated and ever-changing international environment.Bank of China will firmly up

11、hold the guiding principle that the financial sector serves the real economy and resolutely implements the work plans of the Central Financial Work Conference to advance RMB internationalization in a stable,prudent and solid manner.The Bank will harness its unique advantages in globalized operation,

12、keep to the fundamental principles while making innovations in cross-border RMB products and services and help to push the stable and sustainable progress of RMB internationalization with full range of cross-border RMB products and services on all fronts.2CONTENTSChapter I.Overview1.Policy environme

13、nt2.Market environment3.Progress in RMB internationalizationChapter II.Evaluation on the role of RMB as an International Currency1.RMB as a settlement currency2.RMB as a financing currency3.RMB as an investment currency4.RMB as invoice currency5.RMB as a store of valueChapter III.Cross-border Use of

14、 RMB in China1.Cross-border RMB payments from and to the Chinese mainland2.Industrial and commercial enterprises opinions on cross-border RMB products and services3.Characteristics of the use of cross-border RMB products and services by different types of industrial and commercial enterprises4.Cross

15、-border RMB Products and Services Innovation5.Cross-border financial market connectivity productsChapter IV.Use of RMB in Offshore Market1.Overview of the offshore RMB market2.RMB products and services in offshore market3.Cooperation in local currency settlementTopic I:Cross-border Use of RMB in the

16、 Jointly Build Belt and Road countries1.The inclination to use cross border RMB is generally strong2.The relative position of the offshore RMB market has great potential for improvement3.Cross-border use of RMB helps the Belt and Road Initiative go deeper and more practicalTopic II:RMB Financing in

17、the Offshore Market1.The financing demand comes out of the economic and trade activities with China2.Demand for financing products focuses on short-term and indirect financing3.The main purpose of financing is for trade payments4.The stronger role of RMB as a settlement currency has made RMB financi

18、ng more attractive5.The growth potential of RMB financing remains to be further tappedChapter V:Trends and Prospects of RMB Internationalization1.Cross-border RMB products and services2.RMB regionalization3.Offshore RMB market4.The role of RMB as an international currencyAppendix I:Description on th

19、e Samples of the SurveyAppendix II:Major Events of RMB Internationalization(Overseas)92246869707323639747656 575862 636464665462024White Paper on RMB InternationalizationMembers of the Writters Team:Head Office:Shanghai Quarter:Shenzhen Branch:Suzhou Branch:Fujian Branch:Shangh

20、ai Branch:Anhui Branch:Bank of China(Hong Kong):Xiong YuanmengZhang HualinZhang BinbinGuan ChengyingMa ZhihaoXia NanRen ZiyuZheng HuaiyingXing XuewenXie JinmingWang MinYang YongfengZu RanFu YuWang ChunChen Guang79Chapter IOverview82024White Paper on RMB InternationalizationThe Central Financial Work

21、 Conference of China called for advancing RMB internationalization in a stable,prudent and solid manner.Under the overall principle of pursuing mutual benefit and win-win and coordinating development with security on a market-driven basis,the policy arrangements for RMB internationalization were fur

22、ther improved in 2023,with steady progress made in infrastructure development and two-way opening-up of the financial market.In terms of policies and regulations,the Notice on Further Supporting Foreign Economic and Trade Enterprises in Expanding the Cross-border Use of RMB to Facilitate Trade and I

23、nvestment was issued to further facilitate cross-border use of RMB and better meet business entities demand in transaction settlement,investment and financing and risk management.The Opinions on Financial Support for Construction of Hengqin Guangdong-Macao Deep Cooperation Zone and the Opinion on Fi

24、nancial Support for Comprehensively Deepening the Reform and Opening-Up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone were issued to enhance the financial market connectivity and strengthen financial support for Hengqin and Qianhai development and major cooperation platf

25、orms in the Guangdong-Hong Kong-Macao Greater Bay Area.In terms of infrastructure construction,the number of countries and regions with whom China has signed bilateral local currency swap agreements increased to 41,and the scale of the swaps exceeded RMB4 trillion.With new RMB clearing banks set up

26、in Brazil,Cambodia and Serbia,now there are 33 countries and regions with RMB clearing banks in place.At the end of 2023,there were 139 direct participants and 1,346 indirect participants in CIPS cross-border payment and clearing services,representing an increase of 62 and 63 respectively as compare

27、d with the 1.Policy environment811Chapter IOverview102024White Paper on RMB InternationalizationThe global economy growth is estimated to be 3.1%in 2023,lower than the average annual growth of 3.8%for the period of 2000 to 2019.Trade in goods totaled about 24 trillion USD(by value of goods),which de

28、clined by 5%.Chinas economic fundamentals remained positive,with GDP growing by 5.2%in 2023 and CPI rising by 0.2%over the previous year.Goods imports and exports totaled RMB41.76 trillion,up 0.2%year-on-year.Chinas contribution to global economic growth remained above 30%,accounting for 14.2%of glo

29、bal trade in goods.In 2023,the aggregate financing and money supply in China were in line with the economic growth and price level targets.The Peoples Bank of China(PBC)lowered its required reserve ratio twice and announced two loan prime rate(LPR)cuts,keeping RMB liquidity reasonably ample and RMB

30、interest rates on a steady decline.Globally,RMB interest rate is relatively low in general.Compared with yield to maturity of us treasury bonds with the same terms,RMB interest rate is about 250 bps below that of USD.RMB exchange rate against US dollar maintained a high flexibility with two-way fluc

31、tuations.The magnitude of RMB exchange rate volatility was 9.5%for the whole year.Despite its drop in comparison with that for the year 2022,RMB exchange rate still saw extreme fluctuations frequently,with the daily range of movements exceeding 300 bps on 91 trading days,only 11 fewer than in 2022.：

32、Data from the IMF World Economic Outlook,Jan 2024 and WTO2.Market environmentend of the previous year.In terms of financial market connectivity,the Swap Connect was officially launched in May 2023 to provide efficient support for overseas investors participating in the financial derivatives markets

33、in mainland China and Hong Kong and to meet investors demand for interest rate risk management.The pilot program on Cross-border Wealth Management Connect was furthered implemented with improvements in investor entry,scope of participating institutions,scope of qualified investment products,investor

34、s quota and publicity and sales arrangements.5.6%4.8%4.0%3.2%2.4%1.6%0.8%0%5.6%4.8%4.0%3.2%2.4%1.6%0.8%0%2016.01.04 2016.12.31 2017.12.31 2018.12.31 2019.12.31 2020.12.31 2021.12.31 2022.12.312024.03.26Source:WindChinaBond CGB Yield to Maturity:3YUS:Treasury Yield:3YThree-year Yields to Maturity of

35、US Treasury Bonds and China Government Bonds18%16%14%12%10%8%6%4%2%0%2000222023Source:Wind9.1%7.7%11.1%7.4%9.4%3.8%16.1%9.5%Annual Magnitude of RMB Exchange Rate Movements13Chapter IOverview122024White Paper on RMB InternationalizationThe role of RMB as an international currenc

36、y has further improved,highlighting its increasing importance in serving the real economy,facilitating cross-border trade and investment and shaping a new development pattern.In terms of cross-border payments,the national cross-border RMB settlements amounted to about RMB52.3 trillion in 2023,repres

37、enting a year-on-year increase of 24.1%.Specifically,cross-border RMB settlements under the current account stood at RMB14.0 trillion,a year-on-year increase by 33.4%,and cross-border RMB settlements under trade in goods was approximately RMB10.7 trillion,up by 34.9%year-on-year.In the first nine mo

38、nths of 2023,the share of goods trade settled in RMB reached a record high of 24.4%.In banks cross border receipts and payments as agents for customers in 2023,the share of RMB increased to 48.7%,up by 6.2 percentage points from 2022.Cross-border use of RMB has expanded fast in the RCEP region and a

39、long the Belt and Road.According to the SWIFT message data,RMB customer remittances(MT103)in other member countries of the RCEP(excluding China)increased by 20.4%in 2023,and RMB customer remittances in countries along the Belt and Road grew by 21.1%.Cross-border use of RMB remained active.The Bank o

40、f China Cross-border RMB Index(CRI),a gauge of the cross-border RMB use activity,moved higher from quarter to quarter and closed the year 2023 with an all-time high of 364 points.According to SWIFT message data,cross-border RMB customer remittances occurred in a total of 161 countries and regions in

41、 2023,showing an increasingly prominent network effect that has boosted cross-border use of RMB.In terms of the share in global payments,RMB took up a steadily expanding share in global settlements in 2023,which reached 4.14%in December,up by 2.23 percentage points from the beginning of the year,and

42、 making RMB the worlds fourth largest payment currency.600,000500,000400,000300,000200,000100,000080%70%60%50%40%30%20%10%0%200222023Source:The PBC websiteCross-border RMB settlementCross-border RMB settlement under goods tradeCross-border RMB settlement under securities investmentGrowth

43、rate of cross-border RMB settlementGrowth rate of RMB settlement under goods tradeGrowth rate of RMB settlement under securities investment3.Progress in RMB internationalizationCross-border RMB Settlements(in RMB100 Million)and Growth Rate：Calculated on the data from State Administration on Foreign

44、Exchange concerning the cross border receipts and payments through banks as agents for customers,the data is the sum up of receipts and payments under current account and capital accounts.According to data in the websites of the People of Bank of China,RMB receipts and payments under current account

45、 account for 27%of the total cross border RMB receipts and payments,5%4%3%2%1%0%01.2302.2303.2304.2305.2306.2307.2308.2309.2310.2311.2312.23Source:SWIFT RMB Monthly TrackerShare of RMB in Global Payments in 2023贰零贰肆中国银行人民币国际化白皮书15142024White Paper on RMB Internationalization37034032016.06

46、2016.122017.062017.122018.062019.062020.062021.062022.062023.062018.122019.122020.122021.122022.122023.2482642882963063339344343357364BOC Cross-border RMB Index(CRI)1517Chapter IIEvaluation on the role of RMB as an International Currency162024White Paper on RMB Internationaliza

47、tionRMB internationalization was advancing stably and prudently in 2023.Domestic and overseas industrial and commercial enterprises gave positive comments on the role of RMB in terms of settlement,financing,invoicing and store of value.The role of RMB as an international currency improved in various

48、 dimensions.The intention to use RMB for cross-border settlement became more positive.According to the survey conducted in 2023,more than 90%of domestic and overseas industrial and commercial enterprises indicated that they used RMB for settlement of cross-border transactions or planned to increase

49、the use of RMB for settlement,an increase by 8.7 percentage points from the survey in 2022.Specifically,58.2%of domestic and 47.0%of oversea industrial and commercial enterprises indicated that they intended to raise the proportion of settlement in RMB,up by 1.8 and 11.6 percentage points from the 2

50、022 survey respectively.The responses showed both domestic and oversea enterprises had stronger desire to use RMB for cross-border settlement,while overseas respondents were more notable in the enhancement of desire to do so.Foreign trade partners showed higher acceptance of RMB settlement.Zero indi

51、cates complete non-acceptance of RMB;four indicates complete acceptance of RMB.The domestic industrial and commercial enterprises whose overseas trade partners completely accepted RMB(4)or somewhat accepted RMB(3)for settlement represented 60.4%of the total domestic industrial and commercial enterpr

52、ises surveyed,which rose by 6.5 percentage points from 2022.The respondents reporting their business partners complete accept RMB for settlement accounted for 37.3%of the domestic industrial and commercial enterprises under survey,up by 4.8 percentage points from 2022,while respondents that report t

53、heir overseas trade partners completely unaccepted RMB(0)represented only 2.8%,down by 1 percentage point from 2022.The survey results show overseas trade partners stronger inclination to accept RMB for settlement in the trade with China.The circulation and use of RMB in countries or regions outside

54、 the Chinese mainland expanded.30.4%of the overseas industrial and commercial enterprises surveyed responded that they had cross-border RMB receipts and payments with countries or regions outside 1.RMB as a settlement currency70%60%50%40%30%20%10%0%Domestic industrial and commercial enterprises20222

55、0222022202320232023Overseas industrial and commercial enterprisesDomestic and Overseas industrial and commercial enterprisesIncreasing the use of RMB Maintaining the use of RMB Zero use of not plan to useProportion of Industrial and Commercial Enterprises Using or Increasing the use of RMB in Cross-

56、border Payments56.4%34.5%58.2%34.0%35.4%28.8%47.0%42.3%50.0%32.8%55.3%36.2%40%35%30%25%20%15%10%5%0%033.8%10.3%32.0%2.8%8.8%28.0%21.4%23.1%32.5%37.3%Notes:0 denotes complete non-acceptance,while 4 denotes complete acceptanceAcceptance of RMB by Overseas Trade Partners of Domestic Industri

57、al and Commercial Enterprises 19Chapter IIEvaluation on the role of RMB as an International Currency182024White Paper on RMB Internationalization80%70%60%50%40%30%20%10%0%20222023With RMB payments to and from countries or regions outside Chinese mainlandWithout RMB payments to and from countries or

58、regions outside Chinese mainland26.3%73.7%30.4%69.6%RMB Flows in Countries or Regions Outside Chinese MainlandChinese mainland in 2023,an increase by 4.1 percentage points as compared with the survey result in 2022.This finding is confirmed by the SWIFT system data.According to SWIFT RMB Tracker in

59、December 2023,RMB share in global payments reached 4.14%,manifesting a further rise in the circulation and use of RMB outside the Chinese mainland and a stronger network effect of cross-border payments.The inclination to use RMB as a financing currency in trade with China diverge across regions.Over

60、all,65.9%of the surveyed overseas industrial and commercial enterprises considered RMB as the preferred financing currency in trade with China,down by 5.9 percentage points from 2022.By region,77.0%of the industrial and commercial enterprises surveyed in the ASEAN region gave priority to RMB as the

61、financing currency for trade with China,up by 6.4 percentage points from 2022,while 58.2%of the industrial and commercial enterprises surveyed in Europe surveyed gave priority to RMB as a financing currency in trade with China,down by 15.2 percentage points from 2022.The use of RMB for trade financi

62、ng varied across regions.More overseas market entities considered using RMB as a financing currency.75.1%of the overseas industrial and commercial enterprises surveyed said that they would increase the use of RMB as financing currency when international liquidities in US dollar,euro and other intern

63、ational currencies are tight.It was lower than that in 2022 but still in the high range.Meanwhile,65.1%of the overseas financial institutions surveyed said they would consider RMB as an important supplement to international liquidity,up by 14.4 percentage points from the 2022 survey.2.RMB as a finan

64、cing currency85%80%75%70%65%60%20020202.3%69.4%81.7%78.1%71.2%78.6%75.1%Proportion of Overseas Industrial and Commercial Enterprises Considering RMB as a Financing Currency80%60%40%20%0%2020202.5%68.3%71.8%65.9%71.2%Percentage of Surveyed Overseas Industrial and Comm

65、ercial Enterprises Giving Priority to RMB as a Financing Currency in Trade with China：The surveyed overseas industrial and commercial enterprises were from 56 countries and regions,European enterprises account for 34%,ASEAN enterprises account for 18%,enterprises from Hong Kong,Macau and Taiwan acco

66、unt for 14%,enterprises from America account for 9%,enterprises from East Asia account for 7%,enterprises from Central Asia,Middle East,South East,enterprises from Africa,enterprises from Oceania account for 6%respectively,for more details about the sample,please see Appendix 121Chapter IIEvaluation

67、 on the role of RMB as an International Currency202024White Paper on RMB Internationalization60%50%40%30%20%10%0%50%or above20%-50%Below 20%2022202322.6%24.9%21.9%19.2%55.5%55.8%Proportion of RMB Funds in Direct Investments of Chinese Enterprises Going Global 70%65%60%55%50%45%40%202.9%64

68、.9%64.0%Proportion of Going Global Investment Projects for Which Domestic Industrial and Commercial Enterprises Intended to Increase the Percent Use of RMBThe role of RMB as direct investment vehicle currency improved.Of the surveyed Chinese enterprises going global,24.9%reported that RMB accounted

69、for at least 50%of their foreign direct investment,an increase by 2.1 percentage points from the 2022 survey.RMB continued to enhance its role as a vehicle currency for direct investment.Respondents showed strong willingness to use RMB for foreign direct investment.64.0%of the surveyed domestic indu

70、strial and commercial enterprises planned to further increase the use of RMB in their Going Global project investments,basically flat with the 2022 survey and at a relatively high level in the past three years.In 2023,Chinas foreign direct investment flows amounted to approximately RMB1.04 trillion,

71、ranking among the worlds top few,manifesting the great potential for RMB as a direct investment vehicle currency.Respondents were becoming more positive in allocations to RMB financial assets.56.6%of the overseas financial institutions surveyed indicated that they would consider increasing the alloc

72、ations to RMB-denominated financial assets,an increase by 13.4 percentage points over the 2022 survey.After a transitory adjustment in 2022,the intention of overseas financial institutions to invest in RMB financial assets restored obviously.The share of RMB financial assets in investable assets was

73、 expanding.20.8%of the surveyed overseas financial institutions reported that their exposure to RMB financial assets accounted for more than 10%of investable assets,an increase by 8 percentage points as compared with the 2022 survey.Although financial institutions allocations to RMB financial assets

74、 fluctuated with the changing market conditions,the overseas financial institutions will continue to expand their exposure to RMB financial assets amid the growing connectivity of financial markets and the ongoing improvements in Chinas economic fundamentals.3.RMB as an investment currency70%60%50%4

75、0%30%20%10%0%2020202.3%61.3%43.2%56.6%Proportion of Surveyed Overseas Financial Institutions Planning to to Increase Holdings in RMB Financial Assets23Chapter IIEvaluation on the role of RMB as an International Currency222024White Paper on RMB Internationalization45%40%35%30%25%20%15%10%5

76、%0%20%2022202325.6%41.0%41.7%20.5%14.6%2.6%10.4%10.4%10.3%22.9%Share of RMB Financial Assets in Investable Financial Assets60%50%40%30%20%10%0%20022202330.9%17.9%29.7%20.5%29.6%20.9%27.4%18.0%27.2%19.5%51.2%49.8%49.5%54.6%53.4%Insisting on RMB-denominated quotationCompromise pricing for s

77、hared exchange rate riskAccepting pricing currency designated by counterpartyQuotation strategy of Domestic Industrial and Commercial Enterprises amid Volatile RMBAs shown by the survey results from various aspects,the function of RMB as an invoice currency continued to improve steadily in 2023.As f

78、or the relative change in bargaining power,the 2023 survey showed that 31.4%of the surveyed domestic industrial and commercial enterprises responded that their bargaining power in business negotiations improved than the previous year,up by 2.7 percentage points from the 2022 survey.The enhanced barg

79、aining power laid a micro foundation for increasing the use of RMB as invoice currency.From the perspective of avoiding exchange rate risk,the proportion of respondents that insisted on RMB-denominated quotation and leaving the risk of exchange rate volatility to the counterparty increased by 1.4 pe

80、rcentage points as compared with 2022.The proportion of enterprises with compromise pricing for shared exchange rate risk fell by 1.2 percentage points as compared with 2022.The proportion of enterprises fully accepting the pricing currency designated by the counterparty dropped by 0.3 percentage po

81、ints as compared with 2022.The survey showed that,against the backdrop of two-way 4.RMB as invoice currencyIn terms of the changes in the signed trade contracts invoiced in RMB,43.4%of the surveyed domestic industrial and commercial enterprises reported a higher proportion of RMB-denominated contrac

82、ts than in 2022,showing a rise in the proportion for three consecutive years.The choice of invoice currency is steadily moving in favor of RMB and the role of RMB as invoice currency strengthened.fluctuations in RMB value,more domestic industrial and commercial enterprises adopted RMB as invoice cur

83、rency to avoid exchange rate risk,given their stronger awareness of currency risk neutrality.70%60%50%40%30%20%10%0%2020202120222023Decrease from the previous year UnchangedIncrease from the previous year56.3%57.7%58.8%32.1%34.2%35.3%43.4%51.1%11.6%8.1%5.9%5.5%YoY Change in Proportion of RMB-denomin

84、ated Contracts Signed by Domestic industrial and Commercial Enterprises25Chapter IIEvaluation on the role of RMB as an International Currency242024White Paper on RMB InternationalizationMore overseas industrial and commercial enterprises were willing to hold RMB cash or financial assets to protect t

85、heir purchasing power.According to the survey,23.2%of the overseas industrial and commercial enterprises surveyed responded that they would hold their RMB revenue in the form of RMB deposits for payments in the trade with China,up by 4.8 percentage points from 2022.14.5%of the enterprises chose to i

86、nvest in RMB financial assets such as bonds,up by 2.4 percentage points from 2022.62.3%of the enterprises responded that they would convert their RMB revenue into local currencies,down by 7.1 percentage points from 2022.In 2023,prices remained generally stable in China,with the CPI up by 0.2%year-on

87、-year.In the global context of persistent inflationary pressure,the stable purchasing power of RMB has become more pronounced.More and more overseas industrial and commercial enterprises are willing to hold RMB in the form of deposits.As a universal equivalent of value,RMB has gained wider recogniti

88、on for its role as store of value.5.RMB as a store of value90%80%70%60%50%40%30%20%10%0%200222023DepositsInvestment and othersExchange14.0%9.0%77.0%17.7%10.5%71.8%73.4%17.2%18.4%12.1%69.4%23.2%14.5%62.3%9.3%Holding or Investments of RMB revenue by Overseas Industrial and Commercial Enterp

89、risesBox:A Survey on Foreign Central Banks Investment in Chinas Interbank Bond MarketIn May 2022,the International Monetary Fund announced to raise RMB weight in the SDR currency basket from 10.92%to 12.28%,third only to US dollar and euro,recognizing RMBs greater role as a reserve currency.In 2023,

90、Bank of China collected the data on 92 foreign central banks arrangements for including RMB into reserve assets and on the ways of reserve investment in the interbank bond market,target investment instruments and their willingness to increase exposures.The statistical results are as follows:(1).Inve

91、stments were mostly self-reliantForeign central banks investment in the interbank bond market is mainly self-reliant.That is,foreign central banks make investment decisions on their own and have their decisions executed through designated settlement agents i.e.mainly the Peoples Bank of China.In the

92、 case of entrusted investment,foreign central banks reserve assets are managed by an independent asset manager.A few central banks adopt the combination of self-reliant investment and entrusted investment,and some central banks invest through their wholly-owned SPVs.(2).Target investment instruments

93、 were mostly China government bondsThe target investment instruments are mainly the China government bonds,other RMB bonds and highly liquid offshore deposits.RMB government bonds are the main category of investment.(3).Positive willingness to investOf the 92 foreign central banks,about half has ent

94、ered and participated in the Chinese interbank bond market.About two thirds would further increase 贰零贰肆中国银行人民币国际化白皮书27262024White Paper on RMB Internationalizationholdings of RMB reserve assets.Of the central banks that did not enter the Chinese interbank bond market,about one third were pushing for

95、ward or considering an entry for investment On the whole,RMB as a reserve currency is receiving increasing attention from central banks around the world.(4).The pace of investment was subject to market conditionsSince the second half of 2022,the yields to maturity of the US treasury bonds and China

96、Government Bondbecame inverted.In consideration of short term yields,some central banks have postponed the decision to expand their investment in RMB assets.Some central banks decided to wait for better investment window,some central banks reduced RMB investment allocation.(5).The Belt and Road Init

97、iative gave a pronounced impetusThe central banks in Africa,Latin America,South Pacific and Central and Eastern Europe have generally expressed positive intention to invest in RMB as reserve assets.Some central banks have started the market entry process.The economies in the Middle East and Central

98、Asia are paying greater attention to RMB reserve investment.In late 2022,after the first China-Arab States Summit was held,some central banks in the Middle East began to learn about the regulatory and investment policies on RMB bond market.In May 2023 when the China-Central Asia Summit was held,some

99、 central banks in Central Asia strengthened communication with Chinese banks on reserve investment in RMB.2729Chapter IIICross-border Use of RMB in China282024White Paper on RMB InternationalizationCross-border RMB payments between the Chinese mainland and overseas regions are the source of RMB liqu

100、idity for overseas RMB users.The nature,geographical distribution and growth of such payments revealed the following characteristics of cross-border RMB circulation:First,RMB payments under current account took up an increasing share.In 2023,cross-border RMB payments under current account exceeded R

101、MB14 trillion,up by 33.4%year-on-year,accounting for 26.8%of total cross-border RMB payments,an increase by 1.9 percentage points over 2022.More specifically,the proportion of cross-border RMB payments for goods trade gained 1.6 percentage points as compared with 2022.Second,it is subject to trade f

102、lows.Some regions share in the cross-border RMB remittances to and from China is proportional to their weight in Chinas foreign trade.For example,in 2023,the RCEP and EU plus UK accounted for 21.0%and 16.2%of the total cross-border RMB customer remittances to and from China,respectively,while the tw

103、o regions took up 30.2%and 13.2%of Chinas trade in goods in the year,respectively.Together,the two regions accounted for 37.2%of Chinas cross-border RMB customer remittances,and 43.4%of Chinas trade in goods.The flow of trade is to some extent,influencing the flow of cross border RMB of China.Third,

104、the Shanghai International Financial Center is a major hub for cross-border RMB flows.Shanghai is one of the worlds leading trading ports and an international financial center featuring the trading and pricing of RMB financial assets.It serves as a hub in the inbound and outbound RMB flows.In 2023,c

105、ross-border RMB 1.Cross-border RMB payments from and to the Chinese mainlandsettlements in Shanghai accounted for more than 40%of the national total,and cross-border RMB settlements under securities investment even accounted for about 60%of the countrys total.Among the countries and regions where oc

106、curred the customers cross border RMB remittance with mainland China and handled by the domestic branches of Bank of China,the Shanghai Branch of Bank of China covered more than 130.This indicates that Shanghais RMB receipts and payment covers broad areas of the world,highlighting the Shanghai Inter

107、national Financial Centers position as a global hub for RMB circulation.Fourth,Chinas cross-border RMB payments with the RCEP and the Belt and Road countries grew rapidly.Hong Kong,RCEP Free Trade Zone and EU plus UK accounted for 37.4%,21.0%and 16.2%of Chinas cross-border RMB customer remittances,r

108、espectively.The three regions together accounted for 74.6%of the total cross-border RMB customer remittances with the mainland China.Specifically,the growth of cross-border RMB payments between the mainland China and the ASEAN,the RCEP and the Belt and Road countries was prominent,showing solid adva

109、nces in cross-border RMB circulation characterized by spreading from neighboring countries to regional blocs and achieving rapid growth along the Belt and Road countries.10,0008,0006,0004,0002,000040%35%30%25%20%15%10%5%0%-5%B&REU+UKASEANSource:Compiled from SWIFT MT103 dataRCEPScale(100 million)Gro

110、wth RateScale and Growth rate of RMB Customer Remittances between China and Relevant Regions10.6%36.2%2.9%29.5%31Chapter IIICross-border Use of RMB in China302024White Paper on RMB InternationalizationBOX:Cross border use of RMB in RCEP Free Trade ZoneRCEP Free Trade Zone includes 15 countries,i.e.C

111、hina,ASEAN Countries,Japan,South Korea,Australia and New Zealand.For the year 2023,RCEP accounted for 30.2%of Chinas foreign trade,among which ASEAN Countries accounted for 15.4%.Japan,South Korea,Australia and New Zealand together accounted for 14.8%.RCEP accounted for 21.0%of Chinas cross border R

112、MB customers remittance,among which ASEAN Countries accounted for 8.8%and Japan,South Korea,Australia,New Zealand together accounted for 12.2%.RECP as a whole,holds an important position in Chinas foreign trade and take up a large share of Chinas cross border RMB receipts and payments.From the persp

113、ective of total amount of cross border RMB customers remittance,for the year 2023,the total amount of cross border RMB customers remittance occurred in ASEAN Countries was 2.1 times the amount occurred in Japan,South Korea,Australia,New Zealand together;the cross border RMB customers remittance occu

114、rred in ASEAN grew by 22.7%,which was 18.1 percentage points higher than that for Japan,South Korea,Australia,New Zealand together.Among the total amount of cross border RMB customers remittance,the cross border RMB customers remittance with mainland China occurred in Japan,South Korea,Australia,New

115、 Zealand together was 1.4 times the amount occurred in ASEAN Countries;the cross border RMB customers remittance with mainland China occurred in Japan,South Korea,Australia,New Zealand grew by 41.4%.11.9 percentage points higher than that for ASEAN Countries.Japan,South Korea,Australia,New Zealand s

116、aw larger scale of RMB customers remittance with mainland China and faster growth,but mainly bilateral use with mainland China;ASEAN,as a collective of multi countries,saw larger scale of RMB customers remittance and is more prominent in multilateral use of RMB.The cross-border RMB circulation at pr

117、actical level is reflected in the use of cross-border RMB-related products and services.In 2023,domestic industrial and commercial enterprises willingness to use RMB for settlement further improved,but still faced certain disturbing factors from the changing macro-economic situation.These factors ha

118、ve impacts on domestic industrial and commercial enterprises experience of using cross-border RMB products from different aspects.As reflected in the feedback from the enterprises,the convenience of cross border use of RMB saw obvious improvement,which will be instrumental in the expanding and upgra

119、ding the cross border use of RMB.2.Industrial and commercial enterprises opinions on cross-border RMB products and services40%35%30%25%20%15%10%5%0%2022202334.3%36.7%35.2%26.6%3.8%5.0%9.4%15.1%12.1%10.7%5.2%5.8%Major Difficulties Encountered in the Use of RMB for Cross-border Settlement RMB deprecia

120、tion/volatilityConvenienceof RMB useHigh loan costChanging Macro-economic situationHigh hedging costExchange mechanism33Chapter IIICross-border Use of RMB in China322024White Paper on RMB Internationalization48%46%44%42%40%38%36%34%Fortune 500 or large enterprisesMedium sized enterprisesSmall or Mic

121、ro enterprises38.8%41.2%45.8%The Percentage of Reporting Increase in RMB Invoiced Contracts Signed For Enterprises With Different SizeThe depth and breadth of the coverage of the cross border RMB services and products on enterprises with different sizes,in different forms of business and at differen

122、t nodes in the supply chain have effects on the scale and level of RMB cross-border circulation.1.Enterprises with smaller in size are more active in using RMB as invoice currency and show higher recognition on the convenience of cross-border use of RMBAccording to the survey,across the enterprises

123、with different sizes,small and micro enterprises saw more improvements in using RMB as invoice currency.About 45.8%of the surveyed small industrial and commercial enterprises reported increase in RMB-denominated contracts signed over the previous year,about 7 percentage points higher than that of th

124、e surveyed large enterprises and 2.1 percentage points higher than that of the surveyed industrial and commercial enterprises as a whole.The survey results manifested to some extent that large enterprises,despite their stronger bargaining power,are facing more difficulties in breaking away with the

125、path reliance with respect to choosing invoice currency.The banking side should provide more effective supports,e.g.systematic solutions,and more fine-tuned services to assist large enterprises using RMB as invoice currency more frequently.Small or micro enterprises showed higher recognition on the

126、convenience of the cross border use of RMB.51.1%of the surveyed small industrial and commercial enterprises saw no significant difference in the convenience of cross-border use between RMB and other major international currencies,which is 12.5 percentage points higher than that for large enterprises

127、 and 8 percentage points higher than that for the surveyed enterprises as a whole.The results of the survey shows that the advantages of cross-border use of RMB in facilitating cross-border trade and investment have benefited the widespread small and medium-sized enterprises and gained higher recogn

128、ition among them.The survey results also manifested to some extent that for large enterprises,more cross border scenarios are involved and the structure of the deals are more complex,which call for higher requirements for the convenience of the cross border use of RMB.Further analysis showed that th

129、e gaps in the convenience of cross-border settlement between RMB and other major international currencies reported by large enterprises are mainly in the promptness of payment and clearing and the convenience of currency exchange,which accounted for 35%and 25%of the surveyed domestic enterprises res

130、pectively.This manifested that for large enterprises,banks should further improve the cross-border RMB settlement and clearing and currency exchange services to continuously improve the service experience of enterprises of different sizes using RMB for cross-border settlement.3.Characteristics of th

131、e use of cross-border RMB products and services by different types of industrial and commercial enterprises60%50%40%30%20%10%0%Fortune 500 or large enterprisesMedium sized enterprisesSmall or Micro enterprises51.1%42.3%38.6%The Recognition on the Convenience of Cross Border Use of RMB for Enterprise

132、s in Different Size35Chapter IIICross-border Use of RMB in China342024White Paper on RMB Internationalization2.Traders of finished goods are more willing to use RMB for cross border settlement59.8%of the surveyed domestic manufacturers/traders of finished goods surveyed intended to further increase

133、the proportion of RMB settlement,3.4 percentage points higher than that of all the domestic enterprises surveyed.The finished product traders also showed higher recognition on RMB as invoice currency and the convenience of cross-border RMB settlement than the surveyed enterprises as a whole.China is

134、 a leading country in manufacturing.The trade in finished goods plays an important role in Chinas foreign trade.The finished product manufacturers/traders positive inclination to use cross-border RMB settlement displayed the improved capability of cross border use of RMB in serving real economy.The

135、survey also shows that there is still a certain gap between the intermediate goods traders and the surveyed enterprises as a whole in the recognition on RMB as invoice currency and the convenience of cross-border use of RMB.One of the speculations on the possible reasons for this results is,the inte

136、rmediate goods traders were weak in bargaining position and has limited voice in deciding invoice currency and settlement currency when negotiating with either fundamental raw materials suppliers or downstream manufactured goods producers.3.Domestic enterprises showed higher recognition on the conve

137、nience of cross-border use of RMBAccording to the survey,46.6%of the surveyed domestic industrial and commercial enterprises felt no significant difference in convenience of cross-border use between RMB and major international currencies.Benefited from the increasingly favorable policy environment a

138、nd the broader availability of banks trade facilitation services,the domestic industrial and commercial enterprises surveyed have given high recognition to the convenience of cross-border use of RMB.The survey also shows that the convenience of cross-border RMB use was less recognized among overseas

139、 industrial and commercial enterprises.Only 26.5%of the overseas respondents felt no significant difference in convenience of cross-border use between RMB and other major international currencies,20.1 percentage points lower than that of domestic respondents as a whole.The survey results manifested

140、that,to smooth and expand the cross-border RMB circulation,it is necessary to enhance the service experience of domestic industrial and commercial enterprises in using RMB for cross-border settlement and,it is more necessary to improve the supporting products and services for the overseas cross-bord

141、er use of RMB products and service packages,continuously improve the service experience of overseas industrial and commercial enterprises and expand and smooth the cross-border RMB circulation through concerted efforts in both domestic and overseas markets.70%60%50%40%30%20%10%0%Increasing the use o

142、f RMB More RMB-denominated contracts signedNo significant gap in convenience of cross-border RMB settlementCommoditiesIntermediate goodsFinished goodsOthers65.1%56.1%59.8%52.4%45.5%33.5%47.5%38.4%46.0%42.2%48.4%45.5%Cross-border Use of RMB by Traders in Different Commodities37Chapter IIICross-border

143、 Use of RMB in China362024White Paper on RMB Internationalization50%40%30%20%10%0%Domestic industrial and commercial enterprisesOverseas industrial and commercial enterprisesGaps in Convenience of Cross-border Settlement between RMB and other Major International Currencies46.6%26.5%18.9%18.3%13.5%18

144、.7%6.8%8.1%8.6%17.7%5.7%10.7%No significant gap Convenience in payment and clearingConvenience in currency exchangeCompletenessof supporting servicesPolicy controlsOthersTo enhance the convenience of cross border use of RMB and better serve the real economy,the financial institutions explore potenti

145、al demand for cross border use of RMB around key and hot areas of trade growth and strengthen the supporting financial services.(1).Provide Cross-border RMB settlement services for Cross-border E-commerce In 2023,China registered RMB2.38 trillion in cross-border e-commerce imports and exports,up 15.

146、6%.Cross-border e-commerce has become a new force in global trade and an important driver for Chinas trade growth.Providing better RMB cross-border settlement service for cross-border e-commerce helps improve the trade facilitation on the front of cross-border e-commerce and boost high-quality devel

147、opment of foreign trade.It has become a focal point in banks drive to expand and improve RMB cross-border settlement.(2).Expanding scenarios for cross-border use of e-CNYE-currency has the advantages of security and efficiency and has been attracting wide attention.The China domestic market saw the

148、e-CNY spreading in concrete progress.Further expanding the scenarios for the 4.Cross-border RMB Products and Services InnovationCompany P is currently one of the cross-border e-commerce infrastructure service providers with an outstanding business size and broad service scope.It operates more than 2

149、0 branches worldwide serving over 900,000 global merchants,with a business footprint in more than 200 countries and regions.Company P holds over 40 licenses/certifications in Europe,the United States,Japan,India and other countries and regions.Mainland-based Bank B provides Company P with dedicated

150、service solutions with Global E-Commerce as flagship product.By establishing a link with Company P through data interface,Bank B provides comprehensive financial services including online payment,cross-border fund clearing,balance of payments reporting and anti-money laundering for the micro,small a

151、nd medium-sized cross-border e-commerce businesses and individuals operating on the platform owned by Company P.These services support import and export scenarios and cross-border RMB settlement.Also,Bank B provides comprehensive financial service support such as cross-border finance,inclusive finan

152、ce,foreign exchange transactions,credit financing,personal finance,finance for the construction of industrial park and e-CNY,which encompass all nodes of Company Ps cross-border e-commerce ecosystem and meet the needs of new forms of foreign trade businesses with comprehensive and synergistic financ

153、ial services.Case:Providing Cross-border RMB Settlement Support for Cross-border E-commerce39Chapter IIICross-border Use of RMB in China382024White Paper on RMB Internationalizationcross-border use of e-CNY will not only better serve the demands of the real economy,but also pave a new path for the i

154、nternational use of RMB.The mobility of people between the Chinese mainland and Hong Kong has increased rapidly amid the ongoing drive for the Guangdong-Hong Kong-Macao Greater Bay Area development.As a result,the corporate and personal customers in the three regions have increasingly stronger deman

155、d for cross-border payment instruments that are secure in payment,convenient to use and low in costs.Hong Kong-based Bank Z launched e-CNY services that cover personal digital wallet recharge,cross-border bills collection and corporate cross-border use of e-CNY.This move helps expand the cross-borde

156、r use of e-CNY to cover more scenarios,serving the real economy on both sides and enhancing the shared prosperity of residents in the Greater Bay Area.With regard to the personal digital RMB wallet recharge service,Hong Kong residents with Hong Kong mobile numbers are supported to use their HKD or R

157、MB accounts for recharging via Bank Zs mobile banking service.Customers of other local commercial banks are supported in recharging their digital RMB wallets with mainland-based operators via Hong Kongs Faster Payment System(FPS),thus providing greater convenience for Hong Kong users to shop on the

158、mainland.By the end of 2023,more than 13,000 individual customers in Hong Kong had successfully opened e-CNY wallets.In terms of cross-border merchant bills collection service,real-time quotation and exchange have been realized.Merchants may choose to use HKD or RMB for clearing.The low-cost feature

159、 of e-CNY helps merchants reduce their cross-border bills settlements costs.At the end of 2023,the service encompassed Case:e-CNY Products Better Meet Cross-border Settlement Needs of Individuals,Merchants and Industrial and Commercial Enterprises in Hong Kongmore than 300 local merchants ranging fr

160、om beauty shops to convenience stores.During the Cross-border Shopping Festival launched in July and September 2023 for southbound and northbound shoppers respectively,the digital wallet attracted broad participation and attention among Hong Kong residents,suggesting huge market potential for the cr

161、oss-border use of e-CNY among individual customers.In terms of corporate cross-border e-CNY payments,Bank Z provided a full package of services that include e-CNY recharge,cross-border payment,redemption,account opening and inquiries for local pilot enterprises in late 2023.In December,the Bank succ

162、essfully completed the payment for a cross-border commodity purchase deal of a pilot group customer,wrapping up the first ever cross-border e-CNY transaction for corporate customers.Subsequently,Bank Z conducted the first ever e-CNY cross-border settlement for gold transactions in cooperation with S

163、hanghai Gold Exchange,opening up a new channel for overseas investors using e-CNY in investing in precious metals in the Chinese mainland.China steadily advanced the two-way opening-up of its financial market in 2023,further boosting the connectivity between domestic and overseas financial markets a

164、nd bringing convenience to the optimal allocation of RMB funds across the globe.The financial institutions surveyed in 2023 showed greater diversity of channels through which financial institutions participated in connectivity products.Among the connectivity products or services channels such as Sha

165、nghai/Shenzhen-Hong Kong Stock Connect,Bond Connect,China Interbank Bond Market,Wealth Management Connect,QFI and SDR(Stock Depository Receipts),17.5%5.Cross-border financial market connectivity products41Chapter IIICross-border Use of RMB in China402024White Paper on RMB Internationalizationof the

166、surveyed overseas financial institutions participated in two or more of the above connectivity products or service channels,an increase by 5 percentage points as compared with the 2022 survey.100%80%60%40%20%0%1234 or more2022202387.5%82.5%8.3%11.3%2.8%2.5%1.4%3.8%Number of Connectivity Product Cate

167、gories Overseas Financial Institutions Participated inThe surveyed overseas financial institutions reported a more evenly distributed pattern of channels through which they participated in the domestic financial markets.Compared with 2023,an obviously larger proportion of overseas financial institut

168、ions participated in the domestic financial market through the Bond Connect,QFI and Wealth Management Connect.The target investment instruments,investment scope,investment methods and clearing and custody varied with participation channels.This improved evenness of distribution across channels sugge

169、sts overseas financial institutions broader and deeper participation in the domestic financial market.Overseas financial institutions were more proactive in their purposes of participating in the domestic financial market.Compared with 2022,a markedly smaller proportion of overseas financial institu

170、tions participated in the domestic financial market for the purpose of asset-liability matching.More of the surveyed overseas financial institutions shifted their main purpose of participating in the domestic financial market to improving the interest rate and exchange rate risk management,enriching

171、 product offerings and meeting customers needs.In particular,the survey shows an increase of about 15 percentage points in the proportion of the surveyed financial institutions participating in the domestic financial market to enrich the cross-border RMB products and services offerings and better me

172、et customers needs,possibly driven by overseas industrial and commercial enterprises demand for RMB products and services.The enhanced connectivity of financial markets has better met overseas institutions demand for RMB products and services.Take the Swap Connect launched in May 2023 as an example.

173、Since its launch,domestic and overseas market entities have traded actively through this channel.90%80%70%60%50%40%30%20%10%0%Shanghai/Shenzhen/Hong Kong Stock ConnectBond Connect/CIBM/QFIWealth Management Connect2022202382.7%53.4%13.6%38.4%3.7%8.2%Participation of Surveyed Overseas Financial Instit

174、utions in Four Categories of Connectivity Products60%50%40%30%20%10%0%Asset-liability matchingManaging interest rate and exchange rate risksDiversifying product mix to meet customer demandFor higher yieldsOthers2022202339.5%17.6%12.9%19.6%33.3%48.2%10.2%10.1%4.1%4.5%Main Purposes of Overseas Financi

175、al Institutions Participation in RMB Financial Market43Chapter IIICross-border Use of RMB in China422024White Paper on RMB InternationalizationCase:Foreign Investors Manage Interest Rate Risk through Swap ConnectThere are a wide range of participants in the Swap Connect program,including foreign cen

176、tral banks,overseas commercial banks,overseas securities companies and overseas funds.As of the end of 2023,a total of 51 overseas institutions participated in the program and 20 domestic Swap Connect market-makers provided quotations for overseas institutions,with an accumulated notional principal

177、of nearly RMB1 trillion.An overseas bank(Bank A)conducts RMB business in the local market and manages interest rate risks with interest rate derivatives.Before the Northbound Trading of Swap Connect was launched,Bank A usually managed interest rate risks through RMB interest rate swaps in the offsho

178、re market.In contrast,the onshore RMB interest rate swap in the Chinese mainland provides higher market liquidity and closer link to the benchmark with a narrower bid-ask spread,implying the likelihood of lower transaction costs and higher hedging efficiency if using onshore interest rate swap.After

179、 the Northbound Trading of Swap Connect was opened,Bank A can participate in the onshore interest rate swap market without changing its trading and settlement habits under the Swap Connect mechanism.Therefore,Bank A hoped to further improve its RMB interest rate risk control by participating in the

180、Northbound Trading of Swap Connect.A large Chinese bank operating in Hong Kong(Bank C)helped Bank A familiarize itself with the Swap Connect by various means,guided Bank A to prepare for participation in the mechanism and developed a tailor-made service agreement for Bank A with a simplified account

181、 opening process and a flexible settlement scheme.On May 15,2023,the Northbound Trading of Swap Connect was officially launched as the worlds first central clearing house connectivity project for over-the-counter derivatives.Bank C helped Bank A successfully participate in RMB interest rate swap on

182、the launch date.Bank A thus further broadened the channels and reduce the costs of interest rate risk management.45Chapter IVUse of RMB in Offshore Market442024White Paper on RMB InternationalizationIn 2023,the cross-border use of RMB continued to expand in offshore market.Cross-border RMB customer

183、remittances outside Chinese mainland increased by 20.4%year-on-year,up by 6.9 percentage points from 2022.RCEP and Hong Kong are the regions with the most active cross-border use of RMB,together accounting for 75%of the cross-border RMB customer remittances outside Chinese mainland.In hot spots,such

184、 as ASEAN,RCEP and Hong Kong and the countries along the Belt and Road,the cross-border use of RMB continued to grow rapidly.Some other regions saw the size of cross-border RMB payments growing fast from a low base.For example,the total cross-border RMB customer remittances in the Middle East increa

185、sed by 99.5%year-on-year.1.Overview of the offshore RMB marketRCEP+HK 75%AmericaEurope4%17%Middle East&AfricaOther regions1%3%Source:Compiled from SWIFT MT103(customer remittance)dataDistribution of Cross-border RMB Customer Remittances in Countries and Regions Outside Chinese MainlandNote:Compiled

186、from SWIFT MT103(customer remittance)data;the cross-border RMB remittances of RCEP member countries exclude China.30%25%20%15%10%5%0%Countries and regions outside Chinese mainlandRCEP+HKB&RASEAN20.4%28.3%21.1%22.7%Growth of Cross-border RMB Customer Remittances in Selected Hot Spots4447Chapter IVUse

187、 of RMB in Offshore Market462024White Paper on RMB InternationalizationRMB offshore circulation has been further expanded its network effect.The larger RMB flows in overseas markets have given rise to the emergence of some hubs where offshore RMB payment activities are concentrated.Driven by cross-b

188、order trade and investment activities,offshore RMB funds spread from these hubs further to other countries and regions to shape a global network of RMB offshore circulation with one super hub and multiple strong hubs.Note:Compiled from SWIFT MT103(Customer remittance)data.The abscissa denotes the nu

189、mber of countries/regions involved,and the bubble size indicates the size of cross-border RMB customer remittances.Only some of the countries or regions are shown in the graph.Cross-border RMB Customer Remittances(in RMB100 million),Number of Countries/Regions InvolvedBased on the number of countrie

190、s/regions involved and the size of the cross-border RMB customer remittance,the offshore RMB center can be divided into different levels.The first level is the Hong Kong Offshore RMB center,in 2023,SWIFT message data showed that Hong Kong has cross border RMB customer remittance with 103 countries a

191、nd regions around the world,undertakes RMB payments and clearings in equivalent to USD159 trillion,which accounts for 73.3%of the global RMB payments and clearings amount.Hong Kong enjoys the most prominent position in the offshore financial center.The second level includes United Kingdom,Singapore,

192、France and Germany,which has RMB customer remittance with more than 40 countries and regions.The third level includes 17 offshore financial centers,e.g.Luxembourg,Switzerland,Netherlands etc.,which has RMB customer remittance with 21-40 countries and regions.In the year 2023,the number of the third

193、level offshore RMB center increased by 4.The aggregate amount of cross border RMB remittance occurred in the offshore RMB centers further increased from 2022.The business volume in major offshore RMB center expanded.Among which,the offshore RMB center in Asia,i.e.Hong Kong and Singapore saw the bala

194、nce of RMB deposits and loans,the turnover of RMB FX trading grow at faster pace.Note:RMB deposit and loan data are from the websites of relevant central banks/monetary authorities;the data on RMB foreign exchange transactions and RMB payment and clearing are compiled based on SWIFT Market Insight d

195、ata.RMB deposits(RMB100 million)Hong KongSingaporeBritainRMB loans(RMB100 million)RMB foreign exchange transactions(USD1 billion)RMB payment and clearing(USD1 trillion)Size9,39212.4%.5%-130.0%93533483,116118,0377.643,216159-7.8%28.8%3.4%-0.8%23.5%11.4%19.6%17.7%SizeSizeYoYYoYYoYBusiness S

196、ize of Major Offshore RMB MarketsThe offshore RMB market is expanding in pace with the growing popularity of offshore RMB products and services.In the 2023 survey,71.8%of the surveyed overseas industrial and commercial enterprises acknowledged 2.RMB products and services in offshore market90,00080,0

197、0070,00060,00050,00040,00030,00020,00010,0000204060801001200BritainSingaporeFranceRussiaSouth KoreaSaudi ArabiaJapanNetherlandsSwitzerlandLuxembourgAustraliaGermanyHong KongBritainGermanySingaporeFrance49Chapter IVUse of RMB in Offshore Market482024White Paper on RMB Internationalization80%60%40%20%

198、0%2020202.6%70.2%74.4%71.8%Percentage of Overseas Industrial and Commercial Enterprises Acknowledging Convenient Access to RMB Products and Services in Local Marketconvenient access to cross-border RMB products and services from the local market to meet their needs.The supply side of RMB

199、products and services in the offshore market also showed positive changes.In the past year,more than half(54%)of the surveyed overseas financial institutions reported growth in customer demand for RMB-related products and services.37%of the surveyed overseas financial institutions had observed custo

200、mer demand for RMB-related products grow at par with,or even faster than that for other products and services.Driven by the market demand from overseas industrial and commercial enterprises,more than 60%of the surveyed overseas financial institutions planned to further diversify their RMB-related pr

201、oduct offerings to better meet the customer demand.With the expansion of the cross border use of RMB in the overseas markets,the offshore RMB products and services are used in a broader range of scenarios and have played a bigger role in supporting cross-border trade and investment activities.For ex

202、ample,to facilitate trade with China,many local enterprises are in need of RMB financing.As a result,RMB trade financing has become an increasingly popular offshore RMB product for local industrial and commercial enterprises.In some countries,RMB financing has successfully entered the mainstream loc

203、al supply chain finance platforms.Did your customers have increased demand for RMB-related products and services in the past ycar?Do you have any plan to further diversify your RMB-related product and service offcrings?No,no significant incrcase was seenYes46%61%Yes,but the growth was slower than ot

204、her businessesNo17%39%Yes,the growth was flat with other businessesYes,the growth was faster than other businesses24%13%Case:Providing RMB Supply Chain Finance for Large Overseas Automakers to Support its Trade with ChinaAn overseas branch(Branch F)of a Chinese financial institution established busi

205、ness ties with CRX,the largest third-party supply chain platform in Germany.Germany-based Group M is one of the worlds top automakers.When learning that Group M was seeking supply chain finance on the CRX platform,Branch F approached the automaker and promoted its services and was finally enrolled a

206、s the only Chinese bank candidate for the project.Branch F continuously refined its service plan to meet the financing needs of Group M:First,Branch F actively communicated with Group M and introduce 51Chapter IVUse of RMB in Offshore Market502024White Paper on RMB Internationalization50%45%40%35%30

207、%202.9%42.5%46.4%Proportion of Overseas Industrial and Commercial Enterprises with Expanded Local Currency Settlements in Trade with Chinathe advantages of RMB supply chain finance.Second,it embarked on product innovation to develop a new product relating to non-recourse single factoring

208、and successfully launched it on the CRX platform.Third,Branch F made early preparation for customers needs and extended credit support.Group M finally decided to adopt the service plan of Branch F and create a special financing module on CRX for non-recourse single factoring.Branch F provided cross-

209、border RMB supply chain finance for Group M through CRX,supporting its purchase of automobile power batteries from the Chinese mainland.As of the end of 2023,the balance of RMB supply chain finance facility provided for Group M was approximately RMB2.4 billion.The cooperation in local currency settl

210、ement helps avoid the exchange rate risk,save exchange cost and shield bilateral trade from changes in the liquidity of third-party currencies used for payment and settlement.Also,the cooperation in local currency settlement helps foster and expand the market for direct trading between RMB and the l

211、ocal currency,thus further improving the offshore RMB market.The cooperation in local currency settlement continued to advance steadily in 2023.First,the willingness to cooperate in local currency settlement has become stronger.In 2023,more countries expressed their interest in local currency settle

212、ment cooperation.For example,President of Brazil called for expanding local currency settlement during his visit to China.The Johannesburg Declaration adopted at the 15th BRICS Summit stressed the importance of encouraging BRICS countries and their trade partners to use local currencies in internati

213、onal trade and financial transactions.In the 2023 survey,46.4%of the surveyed overseas 3.Cooperation in local currency settlementindustrial and commercial enterprises reported an expansion of local currency settlements in their trade with China than in the previous year,an increase by 3.9 percentage

214、 points as compared with the 2022 survey,and representing a rise for the second consecutive year.Case:The China-Brazil Trade realized Local Currency Settlement For The First TimeThe E Pulp Company was one of the most competitive companies in the pulp industry of Brazil,about 40%of its products was s

215、old to China.In Aug 2023,E company accepted RMB as the invoice currency for its contracts with a Chinese importer and designated the Brazil subsidiary of Bank of China(B bank)as the collection bank.In Sep,B bank received deferred payment LC opened by the Chinese importer and advised the E company,E

216、company presented the shipping documents and invoices as required by the LC.After checking the LC and the documents,B bank made advance payment to E company so as to help E company recoup the working capital earlier.Subject to the foreign exchange management 53Chapter IVUse of RMB in Offshore Market

217、522024White Paper on RMB Internationalizationrequirements,B bank converted the sales proceeds in RMB directly into Brazilian Real and remitted it into Brazil for credit into the account of E company and completed the finance and settlement for the pulp export.The settlement transaction,realized an e

218、nclosed settlement process that cover RMB invoicing,RMB settlement and finance and CNY/REAL direct conversion and provided a one-stop solution for Brazil exporters who use RMB as settlement currency and makes an example for more enterprises that use local currency settlement.Second,the exchange rate

219、 environment is conducive to deepening the cooperation in local currency settlement.When the local currencies of both parties in the trade move in the same direction against the US dollar,the two sides will take lower exchange rate risk in local currency settlement.Under the market-oriented principl

220、e,enterprises will prefer to settle in the local currency.In the 2023 survey,about 67.5%of the surveyed overseas industrial and commercial enterprises acknowledged that they would be inclined to adopt local currency settlement when currencies moved in the same direction.In 2023,the financial markets

221、 expectations for the Federal Reserves monetary policy path changed drastically.The US Dollar Index swung widely,and the correlation between RMB/USD rate and other currencies/USD rate increased.In particular,the exchange rate movements relative to US dollar for the currencies of RCEP member countrie

222、s,such as the Philippines,Singapore,Japan,South Korea,Australia and New Zealand,showed a significantly positive and closer correlation with RMB/USD rate movements.With regard to higher-frequency changes,such as daily co-movements in exchange rates of non-USD currencies and the exchange rate of RMB a

223、gainst USD,the percentage of the trading days when the exchange rate of non-USD currencies move in same direction with the that of RMB to the total trading days generally exceeded 50%and was on the rise.i.e.the currencies of Indonesia,Philippines,Singapore and Laos in ASEAN,and the currencies of Sou

224、th Korea,Australia and New Zealand in RCEP.80%60%40%20%0%-20%MYRPHPSGDTHBVNDBNDLAKMMKKHRJPYKRWAUDNZDBRLRUBINRZAREURGBPNOKPLNHUFCLPCOPPENCZKDKKCHFSEKMXNILSIDR202120222023Correlation between the Daily Exchange Rate Movement for Selected Countries Currencies against USD and RMB/USD:2023 versus 2022 and

225、 2021Source:Bloomberg,Hong Kong Institute of Financial Research of Bank of China80%60%40%20%0%MYRPHPSGDTHBVNDBNDLAKMMKKHRJPYKRWAUDNZDBRLRUBINRZAREURGBPNOKPLNHUFCLPPENCZKDKKCHFSEKMXNILSIDR202120222023Source:Bloomberg,Hong Kong Institute of Financial Research of Bank of ChinaTrading Days with Co-direc

226、tional Movements between Selected Countries Currencies versus USD and RMB/USD Exchange Rate as%of Total Trading Days in the Year:2023 versus 2022 and 2021贰零贰肆中国银行人民币国际化白皮书55542024White Paper on RMB Internationalization60%55%50%45%40%35%30%Overseas averageRCEPASEANBelt and Road46.4%51.2%54.6%55.2%Per

227、centage of Industrial and Commercial Enterprises with Expanded Local Currency Settlements in the Past YearThird,the demand for local currency settlement further expanded in some hot spots.By region,more than half of the surveyed enterprises in ASEAN,RCEP and the countries along the Belt and Road rep

228、orted a larger scale of local currency settlements(in RMB or local currency)in the past year,higher than that for the overseas industrial and commercial enterprises as a whole.The bilateral trade between these regions and China has grown rapidly,fueling their demand for local currency settlement and

229、 there is considerable potential for the further deepening of local currency settlement cooperation between China and these regions.5557Topic ICross-border Use of RMB in the Jointly Build Belt and Road countries562024White Paper on RMB InternationalizationSince China introduced theJointly building t

230、he Belt and Road Initiative in 2013,the economic and trade ties have increasingly strengthened between China and the countries that jointly build the Belt and Road(JBBR countries).In 2023,Chinas trade with JBBR countries totaled RMB19.5 trillion,representing a year-on-year increase by 2.8%,accountin

231、g for 46.6%of Chinas total imports and exports.Both the size and the share reached a record high since the initiative was introduced.Based on the solid economic and trade ties,the cross-border use of RMB has become an important link that boost deeper and solid progress in the Belt and Road Initiativ

232、e.Compared with overseas industrial and commercial enterprises surveyed as a whole,the B&R countries are generally more willing to use RMB.Of the surveyed industrial and commercial enterprises in JBBR countries,55.2%intended to increase the use of RMB,approximately 11.8 percentage points higher than

233、 overseas industrial and commercial enterprises as a whole.The respondents that reported cross-border RMB receipts and payments outside China accounted for 38.4%of the surveyed industrial and commercial enterprises in the JBBR countries,8 percentage points higher than overseas industrial and commerc

234、ial enterprises as a whole.When major international currencies underwent a tightening liquidity,a slightly larger share of industrial and commercial enterprises in the countries chose to use RMB as a new financing currency than overseas industrial and commercial enterprises as a whole.The proportion

235、 of industrial and commercial enterprises in JBBR countries that considered RMB as the preferred financing currency in trade with China was 8.3 percentage points higher than that of the overall Compared with their share in Chinas foreign trade,JRBR countries took up a relatively low proportion of th

236、e total cross-border RMB business in the offshore RMB market.JBBR countries share in the global RMB payment and clearing amount(MT103+MT202)was basically flat with 2022.JBBR countries share in global RMB foreign exchange transactions expanded and that in global RMB trade finance shrank.In the contex

237、t that the cross-border use of RMB is broadly accepted in JBBR countries,the relative position of the offshore RMB markets of the JBBR countries has great potential for expansion.1.The inclination to use cross border RMB is generally strong2.The relative position of the offshore RMB market has great

238、 potential for improvementsurveyed overseas industrial and commercial enterprises.The industrial and commercial enterprises in the JBBR countries held more positive expectations on RMB as an international currency.100%80%60%40%20%0%JRBR countriesOverseas industrial and commercial enterprises55.2%43.

239、4%38.4%30.4%76.3%75.1%72.9%64.6%44.6%39.1%Survey Results of Industrial and Commercial Enterprises in JBBR Countries Versus the overall Overseas Enterprises surveyedIncrease the share of RMB useRMB payments outside ChinaChoosing RMB as new financing currencyRMB financing in trade with ChinaPositive e

240、xpectations on RMB as an international currency59Topic ICross-border Use of RMB in the Jointly Build Belt and Road countries582024White Paper on RMB Internationalization20%15%10%5%0%Payment and SettlementForeign exchange TradingTrade Finance202220237.3%7.3%4.3%5.2%17.5%15.2%Offshore Market Business

241、Shares of Countries along the Belt and RoadNote:Compiled from the Swift Market Insight DataWith the ongoing advancement of the Belt and Road Initiative,progress are made in fields such as policy communication,infrastructure connection,smooth trade,free flow of capital and mutual understanding among

242、the people.The cross-border use of RMB has unique advantages in serving smooth trade and free flow of capital,and will play a a more positive role in promoting solid progress of the Belt and Road Initiative and fostering more cooperation achievements.3.Cross-border use of RMB helps the Belt and Road

243、 Initiative go deeper and more practicalCase:RMB-denominated Comprehensive Financial Services Support Major Belt and Road ProjectsMalaysias East Coast Rail Link(ECRL)project is the largest transportation infrastructure project along the Belt and Road,the largest project between China and Malaysia,an

244、d one of the largest stand-alone projects implemented overseas by Chinese firms.Total investment in the project is approximately RMB80 billion.The project owner is a wholly-owned subsidiary of the Ministry of Finance of Malaysia,and the contractor is ECRL,a wholly-owned project company established i

245、n Malaysia by a large Chinese company(Company J).The Malaysian branch of a Chinese-funded institution(Branch M)provided comprehensive cross-border RMB products and services for the project.(1).Providing RMB cross-border settlement services under Bank-Corporation Direct LinkThere were a large number

246、of sub-contractors and suppliers for the ECRL project.Company J made over 100 payments a day at peak times under various scenarios of cross-border use of RMB,such as settlement of project payments and payment of expatriates wages.In order to improve the payment efficiency,the Branch M connected ECRL

247、s financial system with its banking system through the Bank-Corporate Direct Link service.After completing the approval process at its business end,the ECRL can send the payment instructions directly to the bank to initiate the payment,thus enabling the project company to make cross-border RMB payme

248、nts more efficiently.(2).Providing RMB financing supportIn order to address the mismatch between the project companys spending needs and the project owners settlement cycle,the Branch M provided a RMB working capital loan to the ECRL taking advantage of the low costs and quick application process of

249、 RMB loans in Malaysia.With the payments for project works designated as cash flows for repayment,the loan was approved and provided quickly to ensure smooth project implementation.(3).Providing RMB payroll service贰零贰肆中国银行人民币国际化白皮书61602024White Paper on RMB Internationalization61The Chinese employee

250、s of the project have demand for both Malaysian Ringgit and RMB.A small share of the salaries paid in Ringgit is used for local living expenses,and the large share of the salaries are paid in RMB.Most of the Chinese employees send RMB back to their home countries to support their families.Therefore,

251、the Branch M provided the Chinese workers for the project with one-stop services including opening multi-currency accounts,payrolls service,currency exchange and cross-border direct remittance of RMB.The Chinese workers can open accounts by way of remote video witnessing.The payroll service features

252、 were integrated into the Bank-Corporate Direct Link system,enabling the project company to pay wages without leaving office.The online banking and mobile banking services enabled the Chinese workers to effect such transactions as funds transfer,money exchange and repatriation of wages simply with a

253、 smartphone.In addition,Branch M exclusively provided the Chinese workers with RMB wages direct remittance service that dispenses with the use of US dollar as intermediate currency,saving the exchange cost and making it possible to receive the remittance on intraday basis.63Topic IIRMB Financing in

254、the Offshore Market622024White Paper on RMB InternationalizationIn 2023,RMB financing saw rapid growth in offshore markets.At the end of the year,the outstanding RMB bonds in the offshore market amounted to RMB952.9 billion,a year-on-year increase by 42.4%.Hong Kong as the worlds largest offshore RM

255、B market,saw the outstanding RMB loans increase by 1.3 times to RMB441 billion at the end of 2023.The strengthened role of RMB as financing currency is reflected,at the macro level,as improved ability of RMB credit funds to guide the optimization of domestic and overseas resources allocation,which h

256、elps further improve the quality and efficiency of serving the real economy by the cross border use of RMB.12,00010,0008,0006,0004,0002,0000200232022Outstanding Offshore RMB Bonds(in 100 million RMB)Panda Bonds(in 100 million RMB)Source:Compiled from BOCI and Wind dataOutstanding Offshore

257、 RMB Bonds and Panda Bonds According to the survey on overseas financial institutions,the primary growth driver of RMB financing demand in the offshore market is the economic and trade activities with China,which accounted for 55.4%of the overseas financial institutions surveyed.Secondly,overseas in

258、dustrial and commercial enterprises optimization of the financing currency mix and replacement of outstanding financing denominated in currencies with high interest rate are also important growth drivers of RMB financing 1.The financing demand comes out of the economic and trade activities with Chin

259、aAs shown by the distribution of demand for RMB financing products,the demand of the overseas industrial and commercial enterprises using RMB financing products are more focused on short-term financing,and they use indirect financing much more than direct financing.RMB trade finance products are the

260、 most used products,and the respondents in this category accounted for about 40%of the overseas industrial and commercial enterprises surveyed.2.Demand for financing products focuses on short-term and indirect financingdemand,which accounted for 12%and 15.7%of the financial institutions surveyed,res

261、pectively.The respondents using RMB financing for arbitrage,which was in low relevance to the real economy,accounted for only 3.6%of the overseas financial institutions surveyed.60%50%40%30%20%10%0%12.0%15.7%55.4%3.6%13.3%Distribution of Main Growth Drivers of RMB Financing DemandImproving the finan

262、cing currency mixReplacing outstanding financing in higher-cost currencyTrade and investment ties with ChinaUsing RMB financing for arbitrageOthers50%40%30%20%10%0%Long-term loansShort-term loansTrade financeOthersBond issuance15.9%23.9%41.1%3.2%15.9%Distribution of Demand for RMB Financing Products

263、 from Overseas Industrial and Commercial Enterprises65Topic IIRMB Financing in the Offshore Market642024White Paper on RMB Internationalization45%40%35%30%25%20%15%10%5%0%Trade paymentsReplacing higher-cost debtsIncremental Financing NeedsOthersDiversifying the currency mix of debtsLow interest rate

264、Increased RMB use outside ChinaForeign exchange risk hedgingSupplies from financial institutionsStable exchange rateOthers39.8%9.6%17.6%7.5%25.5%Purposes of RMB Financing of Overseas Industrial and Commercial EnterprisesAs for the purpose of RMB financing,overseas industrial and commercial enterpris

265、es mainly use RMB financing for trade payments,accounting for nearly 40%of the overseas industrial and commercial enterprises surveyed.Given the relatively low interest rate of RMB,some overseas industrial and commercial enterprises began to use RMB financing to meet their incremental financing need

266、s.Among the factors that may attract overseas industrial and commercial enterprises to use RMB financing,i.e.the relatively low interest rate of RMB,the increased use of RMB for payment and settlement in countries and regions outside China,RMB exchange risk hedging instruments cover more currencies

267、by,improved availability of RMB loans or financing products provided by more financial institutions,and the relatively stable exchange rate of local currency relative to RMB,only 19.4%of the 3.The main purpose of financing is for trade payments4.The stronger role of RMB as a settlement currency has

268、made RMB financing more attractivesurveyed overseas industrial and commercial enterprises responded that it is the relatively low interest rate of RMB that has attracted them to use more RMB financing.As high as 40%of the surveyed overseas industrial and commercial enterprises reported that the incr

269、eased use of RMB in countries and regions outside China was the main factor attracting them to use RMB for financing.The survey on the overseas financial institutions shows similar results.Among the factors that may boost the growth of demands for overseas RMB loans,i.e.the increased use of RMB for

270、payment and settlement in countries and regions outside China,the relatively low interest rate of RMB,the improved RMB yield curve so as to provide more pricing benchmarks for financing needs with different maturities and RMB exchange risk hedging instruments cover more currencies,as high as 47.6%of

271、 the surveyed overseas financial institutions chose the increased use of RMB in countries and regions outside China as the primary growth driver of overseas RMB loans.The survey shows that the key to expanding the overseas use of RMB 45%40%35%30%25%20%15%10%5%0%19.4%42.7%7.9%7.7%11.9%10.5%Factors At

272、tracting More Use of RMB Financing by Overseas Industrial and Commercial Enterprises贰零贰肆中国银行人民币国际化白皮书67662024White Paper on RMB Internationalization50%40%30%20%10%0%Increased RMB use outside ChinaLow interest rateImproved yield curveOthersRMB exchange rate risk hedging cover more currencies 47.6%24.

273、4%4.9%12.2%11.0%Distribution of Growth Drivers of Overseas RMB LoansChanges in Use of RMB Financing by Overseas Industrial and Commercial Enterprises from 202245%40%35%30%25%20%15%10%5%0%40.2%26.5%30.7%2.6%Zero useIncreasedBasically unchangedDecreasedfinancing still lies in self-strengthening,i.e.en

274、hance the multilateral use of RMB abroad.The survey showed that only 26.5%of the surveyed overseas industrial and commercial enterprises reported an increase in RMB financing over 2022,there were still 40%of the respondents did not use RMB financing.With the improving role of RMB as settlement curre

275、ncy and the wider popularity of RMB financing products and services,RMB financing still has great growth potential in the offshore market.5.The growth potential of RMB financing remains to be further tapped6769Chapter VTrends and Prospects of RMB Internationalization682024White Paper on RMB Internat

276、ionalizationThe survey results and relative data showed that a wider variety of cross-border RMB products and services were available,with RMB used on a larger scale under more diversified service scenarios.The cross-border RMB products and services will grow and evolve along the following three maj

277、or threads:First,serve the real economy more efficiently.The share of respondents that used RMB for settlement or planned to increase the use of RMB for settlement in cross-border transactions in the surveyed industrial and commercial enterprises rose by 8.7 percentage points as compared with 2022.U

278、nder the background of RMB fluctuating against US dollar in both directions,the survey result indicates that more enterprises avoid foreign exchange risk by using cross-border RMB settlement,which not only enhanced the facilitation of cross-border trade and investment but also contributed to the hea

279、lthy and stable growth of the real economy.Second,boost higher-standard opening-up more intensively.The innovation in cross border RMB products and services will be further integrated into the higher-standard opening-up process.For example,commercial banks provide settlement,quotation,agency and oth

280、er services for the Bond Connect,Shanghai/Shenzhen-Hong Kong Stock Connect and Swap Connect to enhance financial market connectivity.The banks undertaking pilot program on multi-functional free trade account will further facilitated the orderly cross-border flows of RMB in Hainan Free Trade Port and

281、 the Guangdong-Macao In-Depth Cooperation Zone in Hengqin,serving the strategy of upgrading pilot free trade zones.Third,control financial risks more effectively.The weight of RMB The survey result showed the trend of deepening regionalization of RMB,manifesting the stable,prudent and solid progress

282、 in RMB internationalization:First,RMB regionalization has gone deeper and broader.ASEAN and RCEP have shown improvements in the willingness to accept RMB,the larger scale of use and more positive support for RMB products and services,their weights in Chinas cross-border RMB receipts and payments fu

283、rther increased.The ongoing implementation of the Jointly Build the Belt and Road Initiative and the deeper cooperation among BRICS countries have given rise to the emergence of more hot spots for cross-border use of RMB.e.g.Cross-border use of RMB achieved rapid growth in Central Asia,new breakthro

284、ughs in cross border use of RMB have been made in some South America countries.Second,economic,trade and financial cooperation has continued to inject new momentum.The increasingly close economic and trade ties between China and relevant regions have cemented the foundation for cooperation in local

285、currency settlement.1.Cross-border RMB products and services2.RMB regionalizationdebts in the foreign debts of China is increasing.RMB-denominated foreign debts accounted for 47%of Chinas foreign debts in 2023,up by 2 percentage points from 2022 and 14 percentage points from 2018.RMBs enhanced role

286、as financing currency reduces the foreign exchange risk exposure of Chinas foreign debt at the macro level,making foreign debts safer,and helps enterprises reduce currency mismatches in cross border financing at the micro level.Cross-border RMB products and services will play more active role in pre

287、venting and controlling financial risks and safeguarding financial security in the future.71Chapter VTrends and Prospects of RMB Internationalization702024White Paper on RMB InternationalizationFinancial cooperation has gone deeper in such fields as currency swap and the direct exchange of local cur

288、rency with RMB,which helps further improve the infrastructure facilities that support the regional use of RMB.Third,RMB gained firmer footing to become anchor currency.China has further consolidated its position in regional and global trade,which,together with the basically stable prices nationwide,

289、helps to build up firm footing for RMB to become anchor currency.The deeper regional monetary and financial cooperation helps to push forward the coordination on the exchange rate movements of regional currencies.In 2023,despite the high volatility of US Dollar Index,the currencies of many countries

290、 moved in better alignment with RMB,thus further cementing the foundation of RMB as a regional anchor currency.Data from the survey and SWIFT showed that RMB was used more multilaterally,RMB has some preliminary network effects for international use,reflecting the trend of more complete offshore RMB

291、 markets.First,more products are available in the offshore RMB market.RMB has been introduced to mainstream supply chain finance platforms in some regions.The e-CNY products are used in Hong Kong under a wider range of scenarios.Backed by the major Belt and Road projects and overseas cooperation ind

292、ustrial parks,RMB comprehensive financial services have further expanded in overseas markets.With the increasingly broad use of RMB across borders,a series of breakthroughs have been made in hot spots and key areas.Second,the offshore RMB market network has been improved.The survey shows that more o

293、verseas industrial and commercial enterprises reported cross-border RMB payments with countries and Domestic and overseas industrial and commercial enterprises have more positive expectations on the role of RMB as an international currency.80.6%of the surveyed domestic and overseas industrial and co

294、mmercial enterprises responded that the role of RMB as an international currency will be no weaker than Japanese yen and British pound in the next ten years,up by 0.8 percentage points from the 2022 survey.3.Offshore RMB market4.The role of RMB as an international currencyregions outside China.SWIFT

295、 message data also shows an increased share of RMB in global payment and settlement.More countries and regions became regional hubs for multilateral use of RMB,suggesting that the offshore RMB market network has improved to underpin multilateral use of RMB on a larger scale.Third,some of the offshor

296、e RMB centers has strengthened their core positions.The combined share of the three offshore RMB centers in Hong Kong,London and Singapore in global RMB payments and clearing(MT103+MT202)rose by 1 percentage point from 2022 to 81.8%,covering a larger number of countries and regions.The important off

297、shore RMB centers have strengthen their position as hubs in global RMB flows with broader stretch of influence.90%80%70%60%50%40%30%20%10%0%20022202348.8%30.7%32.5%47.7%52.2%28.8%30.1%49.7%51.5%29.1%Close to USD and EURNot weaker than JPY or GBPDomestic and Overseas Industrial and Commerc

298、ial Enterprises Expectations on RMB as An International Currency73Chapter VTrends and Prospects of RMB Internationalization722024White Paper on RMB InternationalizationThe survey results that domestic and overseas market entities maintained positive expectations on the role of RMB as an internationa

299、l currency reflected that positive progress has been made in RMB internationalization on various fronts in 2023:First,RMB has been used more multilaterally.Feedbacks from market entities and monthly reports from SWIFT both show significant improvement in multilateral use of RMB in 2023.The share of

300、RMB in global payments rose beyond the range of 2%-3%hovering for many years and remained above 4%for several consecutive months,signaling the further improvement of RMB as a settlement currency.Second,the role of RMB as financing currency further improved.The survey shows that nearly 80%of the surv

301、eyed industrial and commercial enterprises in the ASEAN region,where the trade with China is growing rapidly,give priority to RMB as financing currency for trade with China,up by 6.4 percentage points from 2022.Feedbacks from overseas financial institutions indicate that the trade and investment tie

302、s with China are the main growth driver for RMB financing demand.The growing demand from the real economy boosted the role of RMB as financing currency.Third,the role of RMB as store of value and reserve currency tends to improve.Overseas industrial and commercial enterprises were more willing to ho

303、ld RMB deposits and RMB-denominated financial assets as compared with 2022.A larger proportion of surveyed overseas financial institutions considered expanding their exposure to RMB financial assets,and a higher percentage of surveyed overseas financial institutions reported a higher than 10%share o

304、f RMB assets in their investable assets.Of the foreign central banks that participated in the Chinese interbank bond market under survey,about two thirds responded that they would further increase allocation to RMB assets as reserves.The survey results showed in various aspects that RMB tends to enh

305、ance its role as store of value and an international reserve currency.75Appendix IDescription on the Samples of the Survey742024White Paper on RMB InternationalizationDescription on the Samples of the SurveyChinese funded enterprise 77.2%Sino-foreign joint venture or wholly foreign owned enterprise

306、20.3%Oversea Local Enterprises 53.2%Overseas Chinese-funded enterprise or Sino-forign joint venture abroadOverseas foreign-funded enterprise or a joint venture abroad between local and foreign investors38.4%8.4%Appendix IThe survey questionnaire was distributed and collected from January 5 to Januar

307、y 31,2024.A total of 3,744 replies from domestic and overseas industrial and commercial enterprises were received,including 2,619 domestic ones.Among all the domestic enterprises,there were 621 replies received from enterprises in the Free Trade Zone(Port)and 323 from going global enterprises.A tota

308、l of 1125 replies were received from overseas enterprises.The distribution of surveyed overseas enterprises is as follows:1.The distribution of domestic enterprises according to the structure of ownership3.The distribution of the overseas enterprises by geographical location The overseas enterprises

309、 are from 56 countries and regions,the distribution by geographical location is as follows:4.The distribution of the overseas financial institutions under survey:A total of 82 replies were received from overseas financial institutions.The distribution of surveyed overseas financial institutions is a

310、s follows:2.The distribution of overseas enterprises according to the structure of ownershipEurope Oceania 34%9%14%6%7%6%18%6%Hong Kong,Macao and TaiwanAfica Middle East,Central Asia and South AsiaAmericaEast Asia ASEAN Commercial BanksOther71%16%5%8%InsuranceSecurities、Investment Banks、Fund Managem

311、ent：Hong Kong,Macau,Taipei,Australia,New Zealand,Papua New Guinea,Japan,South Korea,Kenya,South Africa,Angola,Mauritius,Zambia,Djibouti,Morocco,Brunei,Singapore,Thailand,the Philippines,Cambodia,Malaysia,Indonesia,Myanmar,Vietnam,Kazakhstan,Turkey,The United Arab Emirates,Qatar,Mongolia,Pakistan,Sri

312、 Lanka,Serbia,Austria,Greece,Czech Republic,Belgium,Germany,France,Netherlands,Romania,Italy,Portugal,Sweden,Switzerland,Hungary,United Kingdom,Russia,Ireland,Brazil,Peru,Mexico,Panama,United State,Canada77Appendix IIMajor Events of RMB Internationalization(Overseas)762024White Paper on RMB Internat

313、ionalizationMajor Events of RMB Internationalization(Overseas)Appendix IIAsia Starting from 13th March 2023,the expansion of eligible stocks under the Stock Connect program took effect,enabling eligible shares of international companies that are primary-listed in Hong Kong are to be included in sout

314、hbound trading.The move optimized and expanded the market connection mechanism and will increase the attractiveness of the markets in Hong Kong and Mainland China and will help to boost the use of RMB as investment currency.On 19th June 2023,HKEX introduced the HKD-RMB Dual Counter Model to the seco

315、ndary market for trading and settlement purposes.The HKD-RMB Dual Counter Model is the latest addition to HKEXs ecosystem of offshore RMB products and offers investors the choice of trading the security of a Hong Kong-listed company in either HKD or RMB.Under the Dual Counter Market Making Program,m

316、arket makers will offer buy and sell quotes on RMB-denominated securities,providing consistent liquidity in RMB counter,and minimizing price discrepancies between the HKD and RMB counters.On 15th May 2023,Northbound Trading of Swap Connect was officially launched.It provides a convenient and secure

317、channel for international investors to trade interest rate swap products in the Mainland via a connection between infrastructure institutions in Hong Kong and the Mainland.The scheme aims to facilitate global investors management of interest rate risks arising from their allocation to Mainland bonds

318、.On the first day of trading,a total of 27 overseas institutions conducted onshore RMB interest rate swap contract transactions through Swap Connect,exceeding RMB8.2 billion in nominal value.In consultation with the relevant financial authorities of the Mainland and Hong Kong,the Macau Monetary Auth

319、ority announced on 28th September 2023 that they would further upgrade the Cross-border Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macau Greater Bay Area,which mainly includes optimizing criteria for investor access under the Southbound Scheme,expanding the scope of participat

320、ing institutions and qualified wealth management products,and increasing the investment quotas for individual investors.Subsequently,the financial authorities would follow the revision of the relevant implementation rules or guidelines,and plan to launch the 2.0 version of Cross-border Wealth Manage

321、ment Connect Pilot Scheme in 2024.On 1th February 2023,the Macau Monetary Authority(AMCM)officially launched the MCSD RMB bond Repo.MCSD RMB Bond Repo is a RMB funding business carried out using as collateral high-quality bonds such as central government bonds,local government bonds and policy bank

322、bonds issued in Macau,with Macau Central Securities Depository and Clearing Co.,Ltd.(abbr.as MCSD)as the custodian.MCSD RMB Bond Repo business enriches the methods of RMB liquidity management,and improves the liquidity of RMB bond assets in Macau.On 22th May 2023,the first RMB-denominated Yulan Bond

323、 in the world was successfully issued,the issuance totaled RMB2 billion with 2-year maturity and fixed interest rate of 2.85%.On 20th September 2023,The Ministry of Finance of the Peoples 79Appendix IIMajor Events of RMB Internationalization(Overseas)782024White Paper on RMB InternationalizationRepu

324、blic of China successfully issued 5 billion RMB-denominated offshore bonds,it is the largest issuance with the most diversified investors and order structures in the Macau bond market.In May 2023,the Singapore Branch of Bank of China(BOSCG)joined SGX Currency Node project to provide market making se

325、rvices and RMB liquidities.BOCSG became the first Chinese bank that participated the Currency Node market making for OTC transactions.On 25th August 2023,the SGX listing ceremony of China Bond-ICBC Green Bond Index was held in Singapore.The index was jointly issued by the Industrial and Commercial B

326、ank of China and China Central Depository&Clearing Co.,Ltd(CCDC).It is the first interbank green bond index in the industry based on the latest market standards.It can be tracked and replicated.The index covers the main green products in the interbank market,including green financial bonds,green ent

327、erprise bonds and green debt financing instruments.In August 2023,an energy trading company in Singapore settled its import payment in RMB by issuing a RMB letter of credit for the purchase of green certified biodiesel additives.It marks the first green energy trade financing transaction denominated

328、 and settled in RMB in the Singapore market.On 7th December 2023,The Monetary Authority of Singapore(MAS)announced Cross-border E-CNY Pilot initiatives between China and Singapore.Following the signing of a Memorandum of Understanding(MOU)on digital finance cooperation in 2020 between MAS and the Di

329、gital Currency Institute of the Peoples Bank of China(PBCDCI),MAS and PBCDCI are embarking on a pilot program that will allow travelers from both countries to use e-CNY for tourism spending in Singapore and China.Bank of China Phnom Penh Branch joined CIPS in June 2023 as the first bank which join t

330、he CIPS.On 11th December 2023,under the consultations by the two central banks,Bank of China Phnom Penh Branch is nominated by the Peoples Bank of China as the designated RMB clearing Bank in Cambodia.On 1th November 2023,Bank of China Phnom Penh successfully processed the first RMB to Cambodia Riel

331、 FX Forward trade.In November 2023,Bank of China Phnom Penh Branch is appointed as the designated RMB Clearing Bank for QR Code Payment between Bakong and UnionPay International.On 22th December 2023,the ceremony on the launch of Cross-Border QR Code Payment between Bakong and UnionPay International

332、 was held in Phnom Penh.It marks the official startup of the QR Code Payment Connect between the two countries since the signing of MOU between the National Bank of Cambodia(NBC)and UnionPay International(UPI)on July this year.On 8th August 2023,BOC Thailand successfully provided a green loan certif

333、ied by an independent third-party to Energy Absolute Public Co.,Ltd.,a leading local new energy listed company,which was the first green RMB trade financing in Thailand.Europe In April 2023,French state-owned company Total and China National Offshore Oil Corporation signed a liquefied natural gas(LNG)purchase agreement paid in RMB through the Shanghai Petroleum and Natural Gas Exchange.The deal is