A major breakthrough was made in the internationalization of the yen, with the renminbi accounting f

Mondo International Updated on 2024-01-31

The internationalization of the renminbi has recently made a series of major breakthroughs, which are exciting and commemorable. According to the latest data released by SWIFT, the share of the renminbi in global payments increased from 3.0 in October6%** to 4 November61%, an increase of 101%。This figure not only makes the renminbi surpass the yen to become the fourth largest currency in the world, but also shows that the renminbi's position in the global payment field has been further consolidated. At the same time, the share of payments made by the US dollar, the euro and the British pound, although all fell slightly in November, still occupy the top three positions, respectively. 95% and 715%。

The significant growth of the renminbi's share of global payments is the result of China's active internationalization process. Compared to 2 in November last year37%, and the share of payments in yuan increased by 95%. This shows that the international influence and acceptability of the renminbi are constantly increasing, and it is recognized and adopted by more countries and regions. It is worth mentioning that the progress of the internationalization of the renminbi is not accidental, but gradually achieved by expanding the use of the renminbi in global and financial activities and strengthening cooperation with other countries under the active promotion of China. The cooperation between China and Russia is one of the successful cases. As Russia has become one of the most important energy countries in Europe, the amount between China and Russia has grown rapidly, and more than 90% of the ** is settled in yuan or rubles. This provides strong support for the internationalization of the RMB.

However, while the renminbi has made significant progress in internationalisation, it still faces some challenges and constraints. First, the share of payments in the yuan is still far from the US dollar and the euro. In November's data, the US dollar accounted for 47 percent of global payments08%, and the euro accounted for 2295%, and the two together account for more than 70% of the global payment share. In comparison, the share of the renminbi is only 461%, far behind. This means that if the renminbi wants to catch up with European and American currencies, it will need to make more efforts, devote more time and resources.

Second, the internationalization of the renminbi relies on the support of the SWIFT system. Although some people believe that most of the settlement and payment in RMB international** follow China's own CIPS system, resulting in the payment share being underestimated in the SWIFT statistics, in fact, CIPS and SWIFT have different functional positioning. SWIFT plays the role of a bridge in international settlement, while CIPS assumes the function of clearing. This means that both loading and unloading are supported by the SWIFT system. As a result, most of the transactions settled in RMB will still be counted in the SWIFT system. While the direct participants in the CIPS system are relatively small, the indirect participants make up the vast majority. Therefore, it can be inferred that most of the ** amount settled in RMB is counted by SWIFT.

It should be noted that although an important breakthrough has been made in the internationalization process of the RMB, it is still necessary to maintain a sober and humble attitude. Although the renminbi's share of global payments has increased, there is still a significant gap compared to the US dollar and the euro. At the same time, the internationalization of the renminbi faces other challenges and obstacles. Therefore, instead of being overly optimistic and complacent, we should remain vigilant and continue to work hard to promote the internationalization of the RMB.

In summary, the internationalization of the renminbi has made remarkable progress, but there are still challenges to face. Only by maintaining sustained efforts and a clear head can we achieve the ultimate goal of RMB internationalization and further enhance China's influence and status in the monetary field.

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