The RMB has gained popularity in cross-border transactions and settlements as the country steps up efforts to expand the use of the currency in trade and investment, the Ministry of Commerce said Thursday.
Cross-border RMB settlements for trade in goods amounted to 7.92 trillion yuan (about 1.17 trillion U.S. dollars) in 2022, up 37.3 percent from a year ago, Shu Jueting, a spokesperson for the ministry, told a press conference.
In addition, cross-border RMB settlements for direct investment expanded 16.6 percent year on year to 6.76 trillion yuan last year, according to Shu.
Affected by changes in the global financial market, major currencies have experienced wider fluctuations in their exchange rates, and businesses are more inclined to use RMB in cross-border transactions and settlements, Shu said.
The spokesperson also noted that market demand for the RMB in cross-border investment, financing, and risk management is on the rise.
In response to a question on foreign trade, Shu said the sector has withstood risks and tests and demonstrated strong resilience and vitality despite the volatile external environment over the past three years.
China’s foreign trade is expected to hit a new high in 2022, the spokesperson said.
Despite the pandemic-depressed global demand, China’s foreign trade moved up another notch in 2021, exceeding 6 trillion U.S. dollars for the first time, official data showed.
The Chinese Yuan (Renminbi or RMB) is the official currency of the People’s Republic of China. It is used for everyday transactions, as well as for international payments and investments. It is also used by Chinese companies to purchase goods from overseas. The RMB plays an increasingly important role in the global economy, and is now the fifth most traded currency in the world. The Chinese government has taken steps to liberalize its currency and promote its international use. The RMB is now accepted in more than 40 countries, and is being used as a reserve currency by many central banks. It also plays a major role in the global trade of commodities and services.