Wechat china ecny pay1/20/2024 China’s rise as an economic powerĪmidst the turmoil of the Russia-Ukraine crisis, 2022 marks a turning point for the RMB. In this article, we break down key insights into the RMB’s rise and digitalisation, particularly how using the RMB and digital Yuan can benefit global businesses in increasingly uncertain times. To explore how businesses can leverage these trends, DBS, in partnership with The Asset, organised a webinar with treasury leaders from, AIA, ZTE, and DBS. These trends render the RMB increasingly attractive for trade settlement by businesses trading with corporations in China. Meanwhile, its market share as an international reserve currency reached a high of 2.61% in September 2021 5. In another sign of growing demand, the RMB rose a spot to become the fourth most active currency for global payments in December 2021 4. Long established as the key gateway for cross-border RMB flows, Hong Kong’s RMB deposits hit a record high of 1095.9 billion RMB in January 2022 thanks to corporate inflows 3. One mark of this is the offshore RMB liquidity pool’s exponential growth over the past few years, fuelled by the Chinese government’s economic reforms. While the redback has a long road to attaining global status 2 its market acceptance for cross-border trade settlement and investment is fast increasing. For forward-thinking businesses, this is a moment rich with opportunity.Ĭhina’s rise as an economic power has propelled the RMB’s internationalisation in recent years – a trend that remains promising even as China targets slower GDP growth in 2022 1. As global demand for renminbi (RMB) use rises and China rolls out its digital Yuan, otherwise known as the e-CNY or digital RMB, the world has reached a watershed moment.
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