Cross-border use of RMB surges in BRI countries: Bank of China

(ECNS) -- Data from the Bank of China shows that in the first eight months this year, institutions related to countries participating in the Belt and Road Initiative(BRI) handled cross-border RMB settlements amounting to 5728.52 billion yuan, a year-on-year increase of 90.41 percent, which means the use of cross-border RMB in these participating countries is growing rapidly.

As the Chinese financial market continues to open up, RMB assets are becoming more attractive for global investors, and the friend circle of RMB continues to expand.

Liu Yunfei, deputy general manager of the Transaction Banking Department at Bank of China, explained that to meet market demand, the bank continuously enriches its product offerings for overseas investors and provides relevant services to clients.

In 2022, the Bank of China's Nairobi representative office facilitated the purchase of RMB-denominated bonds by the Central Bank of Kenya, incorporating RMB assets into the country's foreign exchange reserves. Currently, Bank of China has institutions in 64 countries and regions overseas, with over 80 percent conducting RMB business.

In Liu's eyes, in the past, the primary use of the RMB was for payment and settlement. However, nowadays, an increasing number of overseas enterprises are focusing on investment and reserve functions, considering the RMB as an important financing channel.

Particularly this year, the financing cost of RMB is relatively low, and many large overseas enterprises and financial institutions are highly interested in raising funds in RMB. Thus, Liu believes the opportunities for the development of the RMB are promising.

Data provided by the Bank of China indicates that from 2013 to 2023, the bank's overseas institutions expanded their coverage to 26 countries, with 22 being countries participating in the BRI.