This newspaper (reporter Yang Jie) On August 29, the reporter learned that recently, the China Banking Association released the "Report on Internationalization of RMB (2024-2025)" (hereinafter referred to as the "Report"). This is the eighth time the China Banking Association has released a report on the internationalization of the RMB since 2016.

The report is divided into six chapters, systematically sorting out the progress of RMB internationalization policy and the development of RMB cross-border business since 2023, summarizing and analyzing new opportunities for RMB internationalization and the opportunities faced by commercial banks to promote the cross-border use of RMB, and summarizes and puts forward strategies for commercial banks to promote the cross-border use of RMB and policy suggestions for RMB internationalization.

The report mentioned that in October 2023, the Central Financial Work Conference proposed to "steady, prudently and steadily promote the internationalization of the RMB", marking the entry of the internationalization of the RMB into a new stage of development. The Third Plenary Session of the 20th Central Committee of the Communist Party of China once again proposed to "promote high-level financial opening up, steadily and prudently promote the internationalization of the RMB, and develop the offshore RMB market." In order to implement the decisions and arrangements of the Party Central Committee and adapt to the needs of the international development of the RMB under the new situation and new environment, the government and regulatory departments have introduced a series of relevant policies to promote trade and investment facilitation and high-level opening up of the financial market.

"Under the dual role of policy leadership and market-driven, the RMB has been used more widely in cross-border settlement and investment and financing fields, and the level of RMB internationalization has steadily improved." The report mentioned that, first, cross-border RMB business has maintained rapid growth, and the RMB global payment function has been further enhanced. Second, the RMB's global trade financing status has leap. Third, the RMB has shown "both quality and quality improvement" in the securities market.

The report pointed out that the improvement of the internationalization level of the RMB and the active foreign trade in my country have provided broad space for the banking industry to carry out cross-border RMB business. With the in-depth implementation of the "Belt and Road" initiative, the gradual maturity of the offshore RMB market, and the continuous expansion of the global RMB clearing service network, the construction of financial "going overseas" channels is becoming increasingly perfect, and banks' strategies to promote cross-border use of RMB are further enriched, and dimensions are constantly expanding. First, promote the cross-border use of RMB in key areas, key regions and key enterprises. The second is to expand the cross-border use of RMB in new trade formats. The third is to support the innovative development of cross-border RMB in the Free Trade Zone, Shanghai International Financial Center, Hainan Free Trade Port, and the Guangdong-Hong Kong-Macao Greater Bay Area. Fourth, help enterprises avoid exchange rate risks and reduce financing costs.

"As an important participant in the internationalization of the RMB, banking institutions should follow the trend and seize opportunities to further play the role of market construction and promoting the internationalization of the RMB." The report mentioned that the banking industry put forward three policy suggestions based on the existing actual situation: First, further refine the cross-border RMB facilitation policy. The second is to optimize the management mechanism of key business areas of RMB internationalization. The third is to continue to improve the construction of the offshore RMB market.

(Editor Guo Zhichen)