The share of the Chinese currency the renminbi (RMB) in cross-border payments hit a record high in 2020 and continued to gain steam, according to a report on the internationalization of the RMB published by the China Banking Association.
The cross-border use of the RMB surged 44.3 percent year on year to 28.38 trillion yuan (about 4.37 trillion U.S. dollars) last year, of which cross-border receipts reached 14.1 trillion yuan and payments came in at 14.28 trillion yuan, according to the report.
Cross-border RMB settlements accounted for 47.4 percent of all cross-border domestic and foreign currency settlements, a new record that was 9.28 percentage points higher than the figure seen in 2019, data from the report shows.
RMB interest and exchange rates remained relatively stable amid the uncertainty of the COVID-19 pandemic, making the currency safe-haven asset for global investors and capital, the report noted.
As China accelerated the two-way opening-up of its financial market, more channels were established for investors to invest in RMB assets, said the report, and global investors have shifted their "wait-and-see" attitudes to making systematic and long-term investment plans in China's bond market.
The report suggested that China guide market entities to use the RMB in cross-border settlements, investment and financing, enrich RMB bulk commodity futures varieties, accelerate the opening of the domestic commodity futures market, and promote cross-border RMB settlements in the new energy industry during the 14th Five-Year Plan period (2021-2025).