Renminbi (RMB)/Yuan Appreciation & Internationalization

China and Indonesia promote cross-border interoperability of QR codes

The People's Bank of China will promote the cross-border use of the RMB

  The reporter was informed by the People's Bank of China (PBC) on February 20 that in 2025, the PBC will promote the cross-border use of RMB, enhance the functions of cross-border payment, valuation, investment and financing, and further promote the facilitation of trade investment and financing.

  The PBC's recent 2025 Macroprudential Work Conference proposed that it will develop the RMB offshore market, play the role of currency swaps and RMB clearing banks, accelerate the construction of the Shanghai International Financial Center, and consolidate and enhance Hong Kong's position as an international financial center.

  Information from the conference showed that by the end of 2024, the RMB ranked as the world's fourth payment currency and the third trade financing currency, and the internationalization level of the RMB was steadily increasing.

  In addition, the People's Bank of China (PBC) said that in 2025, it will explore the expansion of the central bank's macro-prudential and financial stability functions, improve the macro-prudential policy system, and innovate macro-prudential policy tools. It will improve real estate financial management, help the real estate market stop falling and stabilize, and support the construction of a new model of real estate development.

Speaking of cross-border RMB usage, this paper explains the logic behind pushing for internationalization while maintaining capital controls.

CETC involved in China singapores first cross border digital RMB trade settlement.

China Unicom become first telecom company in China to use digital RMB to send money to UAE through m-CBDC Bridge

very interesting from HKSE. We need to see how this plays out but HK is China's best shot at creating a global financial system that's independent of the West

Hong Kong Exchanges and Clearing, which runs the stock market, said on Tuesday it was working with the territory’s monetary authority to develop an Asian international settlement house that could rival Belgium’s Euroclear and Clearstream of Luxembourg.

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HKEX and the Hong Kong Monetary Authority said the venture would provide a platform for Beijing’s ambition to “internationalise” the renminbi, by deepening the use of the currency as a global reserve asset and for settling trades. It would “advance the development of Hong Kong’s fixed-income market, enabling the next chapter of renminbi internationalisation and enhancing Hong Kong’s status as an international financial centre”, said Bonnie Chan, chief executive of HKEX. The memorandum of understanding plans to turn the HKMA’s Central Moneymarkets Unit, which settles debt, into an international securities house that can handle cross-border payments and multiple currencies.

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The memorandum of understanding plans to turn the HKMA’s Central Moneymarkets Unit, which settles debt, into an international securities house that can handle cross-border payments and multiple currencies. Foreign investors would be able to manage renminbi-denominated bond liquidity and hold global assets under Hong Kong’s jurisdiction. The HKMA has been exploring the creation of a competitor to the European duo since at least June 2022. China is the world’s second-largest fixed-income market at about $25tn while CMU holds $5tn in assets under custody. By contrast, Euroclear, the market leader, holds around $42tn while $20tn sits at Clearstream.

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