1. The share of the renminbi in international payments continues to rise, surpassing the yen to become the fourth largest currency.
The latest data shows that in November 2023, the share of the yuan in international payments reached 46%, surpassing the Japanese yen to become the fourth largest currency for international payments. This figure has set a new record for the internationalization of the RMB, marking the continuous improvement of the status of the RMB in the global** and financial fields.
The continuous increase in the share of international payments of the renminbi is undoubtedly a gratifying result of China's economic and financial development. As a strong currency, the renminbi has made great strides since the launch of cross-border renminbi** settlement in 2009. Not only in terms of settlement, but also in terms of international investment and financing and reserve currency, the renminbi has also made remarkable achievements. All this is the result of China's continuous promotion of reform and opening up and its active economic cooperation with other countries in the world.
There are a variety of driving forces and enabling measures behind the internationalization of the RMB. First of all, China has always adhered to the concept of cooperation in international relations and international economic development, and has laid the foundation for the internationalization of the renminbi with the basic principle of neutrality of the role of international currencies. Second, the international use of RMB has made continuous progress, from cross-border RMB business, investment and financing functions, to RMB reserve functions, all of which have been recognized and adopted by the international community. In addition, the internationalization of the renminbi has also benefited from China's policy measures to expand opening-up and deepen reforms, such as the upgrading and functional optimization of the renminbi cross-border payment system, which provides efficient, convenient and secure services for cross-border**, investment and financial transactions.
China's initiative to promote the internationalization of the renminbi reflects China's firm confidence in openness and cooperation. The internationalization of the renminbi is not only an inevitable trend for China's economy to go global, but also a manifestation of China's active integration into the global economic system. By promoting the internationalization of the RMB, China can better participate in global** and financial cooperation, facilitate cross-border transactions, reduce exchange rate risks and exchange costs, and improve the international competitiveness of financial markets.
As an important infrastructure for the internationalization of RMB, the Cross-border Payment System (CIPS) has been continuously improved and optimized over the years to continuously improve its functions and service levels. As of the end of November 2023, the CIPS system has 1,482 participants, covering more than 4,400 corporate banking institutions in 182 countries and regions around the world. In addition to supporting the cross-border collection and payment needs of RMB and Hong Kong dollars of the real economy, the CIPS system can also provide cross-border clearing of RMB and Hong Kong dollars for financial market business, providing efficient, safe and low-cost fund payment and clearing services for various cross-border RMB businesses.
The continuous upgrading and optimization of the RMB cross-border payment system has promoted the further promotion of RMB internationalization. By providing efficient, convenient and secure payment and clearing services, the CIPS system provides more options for global enterprises and financial institutions, reducing the cost and risk of cross-border transactions. At the same time, the network coverage of the CIPS system has been continuously expanded, and the types of participating institutions have become more and more diversified, which has further enhanced the convenience and extensiveness of the international use of RMB.
The prospects for the internationalization of the renminbi are very broad and are of great significance for promoting the opening up and development of China's economy. With the continuous improvement of the status of the renminbi in international payments, China can better participate in global** and financial cooperation, and improve the flexibility and efficiency of international economic cooperation. At the same time, the internationalization of the renminbi will also help reduce the exchange rate risk of Chinese enterprises and promote the facilitation of cross-border** and investment. In addition, the internationalization of the renminbi is also an important step in the internationalization of China's financial system, which has a positive impact on improving the international competitiveness of the financial market and attracting foreign investment.
The prospect of RMB internationalization is of great significance for the sustainable development of China's economy. With the continuous increase in the share of RMB in international payments, China will be able to better use its economic strength and market influence to promote the in-depth development of global and financial cooperation. At the same time, the internationalization of the renminbi will also promote the reform and opening up of China's financial system, enhance the international competitiveness of the financial market, and attract more foreign investment in the Chinese market. This will help improve the development level of China's financial industry and its international discourse, and further consolidate China's position as an important player in the global economy.
The continuous increase in the share of RMB international payments indicates that China's position in the international financial arena is constantly improving. The progress of RMB internationalization is the result of China's reform and opening up, and it is also an important measure for China to actively integrate into the global economic system. With the increasing share of the renminbi in international payments, China will be able to better participate in global** and financial cooperation, improving the efficiency and quality of international economic cooperation. In the future, the process of RMB internationalization will also face some challenges, such as the uncertainty of the reform of the international financial system and the rise of global protectionism. However, it is believed that with the active promotion of China and the support of the international community, the process of RMB internationalization will continue to move forward, injecting new impetus into the opening up and development of China's economy.