B&R News: Optimism towards Belt and Road boosts renminbi internationalization: report
29 May 2018


The Belt and Road Initiative has placed the renminbi (RMB) on a stable path towards internationalization, according to a new report jointly prepared by financial magazine The Asian Banker and China Construction Bank.


The report covered several areas, including the rate of internationalization, initiatives influencing internationalization, industry sentiment, RMB-denominated financial assets held abroad, and international RMB bond-holding.


It showed the pace of RMB internalization picked up in 2017 with the initiative's promising potential. When asked what factors had had the maximum impact on RMB internationalization, 72 percent of respondents voted for the Belt and Road Initiative.


The industry is optimistic about increased RMB engagement in 2018, particularly in the areas of trade settlement, offshore deposits, payments and forex transactions. About 47 percent of international corporations and 57 percent of financial institutions plan to increase their RMB cross-border engagement this year.


In 2017, the internationalization of the renminbi continued to move forward and its status as an emerging international currency was further consolidated. At the end of 2017, total RMB-denominated financial assets held by international institutions and individuals amounted to 4.28 trillion yuan (630 billion U.S. dollars), up 41.3 percent year on year.


International institutions increased RMB bond-holdings by 347.7 billion yuan, and total outstanding yuan bonds held by international institutions at the year-end reached a record high level of 1.15 trillion yuan.


"Development of RMB hubs across the world along with long-term enablers such as the Belt and Road initiative and clearer policy directions could further strengthen the RMB's position in international financial markets in the foreseeable future," the report said.


Source: Xinhua News Agency