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Offshore RMB Transaction-hot upgraded again on January 15, 2015

Posted on 2015-01-15
On January 15, 2015, the People's Bank of China released the statistical report about China’s financial data in 2014, which shown that the annual cross-border trade in RMB settlement business totaled 6.55 trillion Yuan, the RMB cross-border receipt and payment accounted for nearly 25% of all the RMB and foreign currency cross-border receipt and payment, the proportion of the RMB settlement business in import and export of goods was more than 15%. The number of countries who made cross-border RMB receipt and payment with China reached 174. According to the report of the Bank for International Settlements (BIS), in 2010 - 2013, driven by offshore RMB trading, the RMB turnover increased from $ 34 billion to $ 120 billion, which has become the ninth largest actively traded currency in the world and accounted for 2.2% in the global foreign exchange trading volume.

 

In recent years, the RMB internationalization has made big strides successively. According to data of the People's Bank of China, the central bank has signed bilateral currency swap agreements with 26 foreign central banks or monetary authorities since 2009 and the total amount was nearly 2.9 trillion Yuan. In addition, since 2011, Chinese mainland has opened 13 offshore RMB clearing banks in Sydney, Toronto, Doha, Luxembourg, Paris, Seoul, Frankfurt, London, Kuala Lumpur, Bangkok, Singapore, Taiwan and Hong Kong respectively. Through cross-border RMB business, enterprises avoided the exchange rate risks and save financial costs, banks provided enterprise cross-border businesses with financial products and services, which were benefit to each other and further promoted facilitation of trades and investments.