[116 Canton Fair] RMB Cross-Border Settlement To Help Export Enterprises Steady Growth

In the first three quarters of this year, the amount of cross-border RMB settlement in China has exceeded 4 trillion and 800 billion yuan.

This figure has increased by more than 50% compared with 3 trillion and 160 billion yuan in the first three quarters of 2013, and the total amount of cross-border RMB settlement reached 19 trillion and 900 billion yuan in the whole country.

In the recently held "Canton Fair cross border RMB business policy seminar", the central bankers pointed out that RMB cross-border settlement has become a powerful starting point for China's trade enterprises to reduce costs and steady growth.

Li Simin, deputy governor of the Guangzhou branch of the people's Bank of China, cross border RMB business has become a powerful starting point for enterprises to reduce exchange rate risk and reduce financial cost and comprehensive cost.

According to the enterprise, we can see that the cost savings or revenue increase of enterprises in the process of cross border RMB settlement is about 2% to 3%. According to the total settlement amount of 5 trillion and 600 billion in Guangdong Province, the cost of saving enterprises is about 160 billion yuan, which has played a positive role in promoting Guangdong's steady growth in foreign trade and supporting local economic development.

Nationwide, corporate factors

The cost of saving is close to 600 billion yuan.

Canton Fair is the largest international trade platform in China. It is known as "barometer" and "wind vane" of China's foreign trade.

Many enterprises participating in the past 5 years have been deeply aware of this.

However, the degree of acceptance of RMB settlement in different markets is very different. Enterprises also hope that the pace of internationalization of RMB can be faster.

The products of Zhejiang Shengli Plastic Co., Ltd. are mostly exported to developed countries such as Western Europe, Nordic Europe and North America. Since 2012, enterprises have tried to use RMB settlement to communicate with customers in these markets, but they have encountered some obstacles.

Wang Zhida, sales manager of Zhejiang Shengli Plastics Co., Ltd.: at that time, because the offshore trading center in Frankfurt and London had not yet been established, the whole operation was very cumbersome. At that time, the customers preferred the first dollar and the euro second.

If we can improve the RMB offshore trading center in London and Frankfurt all over the world, we can also talk to the guests about RMB.

Because it would cost him less a exchange rate and a less paction cost for me.

In fact, there are signs that the new round of internationalization of the RMB has begun.

The bank for International Settlements report shows that the global share of RMB foreign exchange pactions has jumped from 0.9% in 2010 to 2.2% in 2013, a huge increase.

As of the end of June 2014, the RMB pool of funds in Hongkong has exceeded 1 trillion and 100 billion yuan.

Many financial centers around the world show high enthusiasm for offshore renminbi business, including Singapore, London, Seoul and Frankfurt.

The steady development of offshore renminbi market is also reflected in its gradual growth of its products. Now it has not only RMB yuan deposit and loan traditional products, but also foreign exchange pactions and RMB lending. A very important product is bonds, and the scale of bond issuance is steadily expanding.

The geographical and industrial distribution of investors is becoming increasingly diversified.

There are many products that are priced or traded on the market, including financial products, depository receipts, insurance policies, various funds, futures, and RMB derivatives.

However, the industry also pointed out that the limited scale of offshore business, imperfect overseas RMB reflux mechanism, and the blank quotation of commodity Renminbi quotas are all outstanding deficiencies in the cross-border business of RMB.

The internationalization of RMB can only be regarded as a "children's era". Its development is mainly concentrated in the field of trade, and there is still great potential in the financial field.

The main achievement of the current internationalization of RMB is embodied in trade, which is related to the use of goods and services.

So we can say that the internationalization of RMB in the field of trade has made considerable progress.

In the field, we are still at the beginning stage.

The level of RMB internationalization in the financial sector is still relatively low.

Lian Ping believes that the renminbi will eventually become real.

Its functions as loan currency, investment currency, trading currency and reserve currency are also urgently needed to develop.

It is feasible to encourage and support Chinese enterprises investing in Southeast Asian countries to use Renminbi, actively carry out overseas RMB loans, offshore RMB bond financing, equity financing, and support local enterprises in a wider range of "going out".

It is understood that since 2009, the people's Bank of China has signed bilateral currency swap agreements with 26 overseas central banks or monetary authorities, with a total amount of nearly 2 trillion and 900 billion yuan, and the renminbi has become the seventh reserve currency.