China's RMB Denominated loans rose by RMB 21.58 Trillion the first 11 months of this year. In November alone, the yuan-denominated loans rose by RMB 1.09 Trillion, according to the People's Bank of ..
Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
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China's RMB Denominated loans rose by RMB 21.58 Trillion the first 11 months of this year. In November alone, the yuan-denominated loans rose by RMB 1.09 Trillion, according to the People's Bank of ..
BREAKING NEWS
THE LONDON METAL EXCHANGE IS PLANNING TO LAUNCH NEW METALS CONTRACTS USING PRICES FROM THE SHANGHAI FUTURES EXCHANGE..
this does feel like a big news.
For those who don't know at home. futures exchange often offer future contracts traded in a different exchange on their own exchange but using cash settlement rather than actual delivery. Something will have to be worked out in terms of exchange rate to be used. But this actually would make SHFE a lot more interesting to market maker around the world
supercat
Major
It seems that in the last 2 years or so, the speed at which the CNY's uses rise is more impressive than the share of CNY's uses. If the pace can be kept, RMB/CNY will be really internationalized in the next decade.According to SWIFT, RMB surpassed euro in the global currency in trade finance market, reaching 5.8%, becoming the world's 2nd largest trading currency..
Note - This is data only from SWIFT. didn't include CIPS data.
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It's even more impressive that these numbers are for SWIFT transactions and Russia is banned from SWIFT, so these numbers don't include Russia's use of CNY in its international transactions.
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The National Bank of Cambodia (NBC) and UnionPay International (UPI) officially introduced a platform for cross-border QR code payments, connecting the central bank’s Bakong network with UPI’s global network on December 22.
“From today onwards, visiting UnionPay cardholders can utilise their UnionPay-enabled wallets, including the UnionPay app and commercial bank apps with UnionPay QR code payment support, to scan KHQR codes for completing transactions at approximately 1.8 million Cambodian merchants,” she said.
“Furthermore, by early 2024, Cambodian residents will have the capability to use their Bakong wallet for payments at UnionPay QR code-accepting merchants in China and around the world, thereby enhancing the mobile payment experience for international travellers,” she added.
According to the General Department of Customs and Excise (GDCE), bilateral trade between the two nations reached $10.07 billion in the first 10 months of 2023, marking a 4.6% increase.
“From today onwards, visiting UnionPay cardholders can utilise their UnionPay-enabled wallets, including the UnionPay app and commercial bank apps with UnionPay QR code payment support, to scan KHQR codes for completing transactions at approximately 1.8 million Cambodian merchants,” she said.
“Furthermore, by early 2024, Cambodian residents will have the capability to use their Bakong wallet for payments at UnionPay QR code-accepting merchants in China and around the world, thereby enhancing the mobile payment experience for international travellers,” she added.
According to the General Department of Customs and Excise (GDCE), bilateral trade between the two nations reached $10.07 billion in the first 10 months of 2023, marking a 4.6% increase.
CIPS has grown from under 300B RMB/day pre-covid to around 550B RMB/day in Q3
550B RMB/day annualized $28.7T/year
SWIFT does $150T/year
Gap is smaller than one might expect
While I am as excited to read these good news for China, I am also equally concerned that a Nuclear War is fast approaching !
That makes RMB something like 52% of USD's volume once CIPS is included. That's very impressive. If they manage to up the volumes at the same rate as pre-COVID to now, we could be looking at 80% of USD's volume by 2028-2030. Earlier if trends become even more favorable.