Business / Economy

RMB in greater use for cross-border trade: Central bank report

(Xinhua) Updated: 2016-08-11 07:30

RMB in greater use for cross-border trade: Central bank report

A bank staff member checks RMB banknotes at a bank in Lianyungang, East China's Jiangsu province, Jan. 7, 2016. [Photo/Xinhua]

BEIJING - Chinese currency is increasingly being accepted in cross-border transactions, as the currency gains increased global recognition, a central bank report said Wednesday.

In 2015, the volume of cross-border renminbi receipts and payment reached 12.1 trillion yuan ($1.83 trillion ), an increase of 21.7 percent year on year, according to data released by the People's Bank of China (PBOC).

It accounts for nearly one third of the total volume of cross-border receipts and payments.

China has aggressively promoted global use of the renminbi, as the world's largest trading nation looks to lower transaction costs in international trade, which currently is mostly settled in US dollars.

Last year, the IMF decided to add yuan into its Special Drawing Rights (SDR) currency basket, making it one of the five reserve currencies fully endorsed by the 188-member organization.

PBOC's latest report showed that by the end of 2015, yuan had become the third most-used currency in cross-border trade and financing. It took fifth place among all currencies for use in international payments and foreign exchange trading.

The report said that yuan will become more accepted in cross-border current account trading, and overseas investors will enjoy wider access to yuan-denominated investment and financing products. The currency looks set to take up a greater share of global reserve currency assets.

IMF data showed that $94 billion of official assets were already held in renminbi at the end of 2014, accounting for 1.1 percent of global foreign exchange reserves.

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