Renminbi (RMB)/Yuan Appreciation & Internationalization

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pbd456

Junior Member
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Wrought said:
Apparently the IMF and World Bank came in with an assist on the Kenyan loan conversions from USD to RMB.



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What are the risk that CNY appreciate over time when other countries are converting USD debt into RMB debt? China has promised these countries that RMB will not have substantial appreciation?
 
Wrought

Wrought

Senior Member
Registered Member
Cross-border transactions were up 14% in H12025, to 35 trillion RMB. Favorable interest rates have boosted adoption esp. in BRI countries.

In the first six months of the year, the use of the yuan in cross-border payments totalled 35 trillion yuan (US$4.9 trillion), up 14 per cent from a year earlier, according to the People's Bank of China.

Yang said the willingness of the company's non-Chinese clients to settle in yuan was highest among countries involved in the Belt and Road Initiative, such as Pakistan, Thailand and Malaysia, Saudi Arabia, Uzbekistan and Kazakhstan. "Renminbi internationalisation is advancing quickly," he said. "As more Chinese firms go global, the use of renminbi will naturally rise. The renminbi offers notably competitive interest rates right now, which is a major factor in reducing our financing costs."

China held its one-year loan prime rate, the benchmark for lending to companies, at 3 per cent and five-year rates at 3.5 per cent for the fifth consecutive month in October, while US dollar borrowing costs hover around 4 per cent.
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