China to expand cross-border use of RMB

China will expand the use of its currency, the renminbi (RMB), in cross-border payments amid efforts to advance RMB internationalization, said a central bank report released on Saturday.

The signing of the Regional Comprehensive Economic Partnership agreement will further boost trade in the Asia-Pacific region, thereby offering more opportunities for using the RMB in trade and investment activities, said the report by the People’s Bank of China.

Based on RMB-denominated commodity trade settlements, which develop steadily, China will increase the use of the currency in cross-border e-commerce, the report said.

To push forward RMB internationalization, the country will also explore more options for RMB-denominated investment and financing, step up currency settlement cooperation with other countries, and improve the infrastructure for RMB settlement and clearing.

The cross-border use of the RMB, including payments and receipts, surged 44.3 percent year on year to 28.39 trillion yuan (about 4.4 trillion U.S. dollars) in 2020, an all-time high, data from the report showed.

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