The proportion of global payments has doubled in a year, and the strength of the renminbi has risen

Mondo Finance Updated on 2024-01-30

Since 2023, significant progress has been made in promoting the internationalization of the RMB. According to data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), in November 2023, the proportion of RMB transactions used in transactions increased from 3.0% in October6% to 461%, breaking through 4%. Compared to 2 in the same period last year37% compared to the proportion of global payments in just one year, the proportion of RMB in global payments has doubled, and the ranking of global transaction usage has also risen to 4th. For the first time since January 2022, the renminbi surpassed the yen to become the world's fourth-most commonly used currency after the dollar, the euro and the pound.

The proportion of RMB transactions used in transactions increased from 36% to 461%, breaking through 4%.

At the same time, according to Bloomberg, the renminbi accounts for more than the U.S. dollar in China's cross-border payments. In August 2023, the renminbi's share of cross-border payments and revenue rose to a record 54%, compared to 41% for the U.S. dollar.

According to the "Monetary Policy Implementation Report for the Second Quarter of this Year" released by the People's Bank of China, in the first half of 2023, the total amount of cross-border RMB receipts and payments will be 245 trillion yuan, a year-on-year increase of 20%, accounting for 57% of the total cross-border receipts and payments in domestic and foreign currencies in the same period, of which 120 trillion yuan, paid 124 trillion yuan.

In September 2023, the renminbi accounted for 58%

In addition, in September 2023, the RMB accounted for 58%, up 1. year-on-year6 percentage points, surpassing the euro, rising to second place.

In the past 30 years, the strength of the renminbi (real effective exchange rate) has been 5547%, the strength of the dollar rose by 3406%

According to statistics from the Bank for International Settlements (BIS), in the past 30 years, the strength of the renminbi (real effective exchange rate) has been 5547%, among the world's major economies, the largest range.

The real effective exchange rate is the weighted average of the bilateral nominal exchange rates between a country's currency and all ** partner currencies, excluding the effect of inflation on the purchasing power of each country's currency.

The effective exchange rate is a weighted average exchange rate, usually weighted by the proportion of foreign countries. The effective exchange rate is a very important economic indicator, which is usually used to measure the international competitiveness of a country's ** goods, and can also be used to study the early warning indicators of currency crises, and can also be used to study the living standards of a country relative to another country.

According to statistics from the Bank for International Settlements (BIS), in April 1995, the real effective exchange rates of China (RMB), the United States (US dollar), the United Kingdom (British pound), Switzerland (Swiss franc) and Germany (Euro) were respectively. 27, and 1269。

In October 2023, the real effective exchange rates for China (RMB), the United States (USD), the United Kingdom (GBP), Switzerland (CHF) and Germany (EUR) were respectively. 12 and 1002。Compared to April 1995, respectively, there were increases. 43%、-1.12% and -2104%。

Among these five countries, the real effective exchange rate of the renminbi has appreciated the most in the past 30 years, with an increase of 5547%。This was followed by the United States (US dollar) and the United Kingdom (British pound), which grew by 34 respectively06% and 143%。Switzerland (CHF) and Germany (EUR) each **112% and -2104%。In addition, during this period, the real effective exchange rate of the yen fell sharply by 6279%, ranking among the top among the world's major economies.

The rise in the real effective exchange rate of the renminbi reflects a marked increase in the comprehensive purchasing power of the renminbi relative to various currencies in the past 30 years, and the reduction of the expenses and burdens that Chinese enterprises and households need to pay when purchasing imported products and services. At the same time, it also vigorously countered those who exaggerated the amount of China's currency and the depreciation of the renminbi.

The BRICS countries will promote "de-dollarization" in the future, and the proportion of RMB in global payments will continue to increase in the future

At the BRICS summit in August, countries such as Egypt and Saudi Arabia joined the BRICS group, at which these emerging markets made clear their "growing dissatisfaction" with the dollar and began to actively try to strengthen the use of local currencies in international transactions and settlements.

In 2022, the total GDP of the BRICS countries was $26 trillion, accounting for about 26% of the world's total GDP. The total GDP of the 11 BRICS countries is 29$2 trillion, accounting for about 29% of the world's total GDP.

According to the data of the IMF, an international ** organization, in terms of purchasing power parity, before the expansion of the BRICS, the proportion of the GDP of the five BRICS countries (Brazil, Russia, India, China and South Africa) in the world has increased from 16 in 19959% rises to 32 in 20231%, and the global GDP of the 11 BRICS countries is as high as 37%.

In view of the huge economic size of the BRICS countries, with the gradual advancement of the "de-dollarization" of the BRICS countries, the proportion of RMB global payments will continue to increase rapidly in the future.

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