The internationalization of the renminbi has accelerated!According to the "RMB Tracking Monthly Report and Data Statistics" recently released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), in November 2023, the RMB surpassed the Japanese yen to become the fourth most active currency in the world in the ranking of global payment currencies based on value statistics. This news marks an important milestone in the internationalization of the renminbi, which has been further enhanced in its international status after 14 years of efforts.
This achievement is not accidental, but the result of our long-term efforts to promote the internationalization of the RMB. The country has been actively promoting the cross-border use of RMB, including signing currency swap agreements with other countries and promoting the construction of an offshore RMB market. In addition, the strong growth of China's economy and the continuous improvement of its international status have also provided strong support for the internationalization of the RMB.
However, even though the renminbi has overtaken the yen to become the fourth most active currency in the world, we still need to be clear that the renminbi's share of the international market share is still relatively low, at only 461%。This means that the internationalization of the renminbi still has a long way to go and needs to continue to work hard to promote it. In the future, countries and enterprises can take a variety of measures to further promote the internationalization of the RMB. First of all, it can strengthen economic cooperation with other countries, promote bilateral investment and increase the use of RMB. Second, enterprises can actively carry out cross-border** and investment activities to expand the scope of use of RMB. In addition, financial institutions can also actively expand their overseas business and improve the level and quality of RMB financial services.
At the same time, we should also be aware that the internationalization of RMB is a long-term process, and it is not simple to achieve, and it requires the joint participation and efforts of enterprises, enterprises and the market. In this process, it is necessary to maintain patience and determination, continuously strengthen reform and opening up, and create a more favorable environment for the internationalization of the RMB. However, the internationalization of the renminbi has not been smooth sailing, and there are still many challenges and opportunities. In the future, we need to strengthen economic cooperation with other countries and regions to increase the international acceptance and use of the RMB. Through these efforts, it is believed that the internationalization of the renminbi will make more positive progress.
In the longer term, the internationalization of the renminbi is also important for the world's economic and financial stability. With the enhancement of China's economic strength and the expansion of foreign countries, the use of the renminbi has become one of the important factors in maintaining the stability of the international monetary system. Therefore, promoting the internationalization of the renminbi will not only benefit China's own development, but also contribute to global economic and financial stability.
In addition, with the rapid development of the digital economy and the continuous emergence of fintech innovation, the internationalization of RMB is facing new opportunities and challenges. China should seize the opportunities, address the challenges, strengthen regulation, promote innovation, and improve the accessibility and convenience of RMB financial services. Through the implementation of these measures, it is believed that the internationalization of the renminbi will achieve greater success at a higher level.
The internationalization of the renminbi has not only enhanced the international status of China's economy, but also contributed to the stability and development of the global financial market. However, with the advancement of RMB internationalization, risks such as RMB exchange rate fluctuations and capital flows will also increase accordingly. Since the reform of the RMB exchange rate formation mechanism in 2005, the RMB exchange rate pattern has been stable, but as the US dollar has entered a strong cycle, the RMB exchange rate has fluctuated greatly recently, but there is no unilateral appreciation or depreciation, and the exchange rate risk is basically controllable. The state should continue to promote the reform of the RMB exchange rate formation mechanism, further give play to the fundamental role of market supply and demand in the formation of the RMB exchange rate, improve the managed floating exchange rate system, enhance the flexibility of the two-way fluctuation of the RMB exchange rate, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
China is the world's second largest economy, and the internationalization of the RMB has become imperative, and the country needs to strengthen financial supervision and risk prevention and control to ensure the stability and sustainable development of the RMB internationalization process.