Core Insights - The "White Paper on Renminbi Internationalization" released by the Bank of China indicates continued progress in Renminbi (RMB) internationalization in 2024, with an increase in cross-border RMB settlement and enhanced international monetary functions [1] Group 1: Cross-Border RMB Settlement - The total cross-border RMB settlement volume in 2024 is approximately 64.1 trillion yuan, representing a year-on-year growth of 22.5% [1] - The current account cross-border RMB settlement volume is 16.3 trillion yuan, up 15.7% year-on-year, while the goods trade under the current account is about 12.4 trillion yuan, increasing by 15.9% [1] - The capital account cross-border RMB settlement volume is 47.8 trillion yuan, with a year-on-year growth of 24.9%, and the securities investment cross-border RMB settlement volume is 28.7 trillion yuan, up 28.8% [1] Group 2: RMB Usage in Global Payments - In 2024, the RMB's share in payment clearing, trade financing, foreign exchange transactions, and foreign exchange reserves is 4.2%, 5.5%, 5.0%, and 2.2% respectively, showing varying degrees of improvement compared to 2023 [2] - The RMB ranks as the fourth largest payment currency, third largest trade financing currency, fifth largest foreign exchange trading currency, and seventh largest reserve currency globally [2] Group 3: Survey Insights on RMB Internationalization - A survey conducted by the Bank of China among over 2,200 domestic enterprises and nearly 1,100 overseas enterprises indicates a steady increase in the RMB's monetary functions, with a notable rise in the willingness of foreign enterprises to use RMB [2] - Small and micro enterprises show a higher recognition of the convenience of cross-border RMB usage, particularly those with a higher proportion of export income [2] - The survey results highlight that over 90% of domestic and foreign enterprises recognize the advantages of using local currency for settlement, with 80% acknowledging the convenience of local currency transactions [3] Group 4: Regional Feedback and Multilateral Cooperation - Enterprises in ASEAN and surrounding regions show a positive response regarding the willingness to use RMB, indicating a stronger foundation for RMB regionalization [3] - The depth and breadth of offshore markets have improved, with more foreign enterprises reporting easier access to RMB products and services, particularly in ASEAN, Europe, and Latin America [3] - The momentum for multilateral cooperation is strengthening, with approximately 37% of surveyed enterprises believing that cross-border RMB usage fosters financial and trade stability [3]

Core Viewpoint - The People's Bank of China, along with financial regulatory bodies and the Shanghai municipal government, has issued an action plan to enhance cross-border financial services in Shanghai, aiming to optimize foreign exchange risk management and promote the use of the Renminbi in international transactions [1]. Group 1: Foreign Exchange Risk Management - The action plan emphasizes the development of diverse foreign exchange risk hedging products and services to improve risk management capabilities [2]. - It supports the establishment of trading facilities for Renminbi foreign exchange transactions in free trade zones and aims to enhance currency exchange services for countries involved in the Belt and Road Initiative [2]. - The plan encourages banks to expand their foreign exchange trading services and to actively engage with enterprises to raise awareness of foreign exchange risk management [2]. Group 2: Promotion of Renminbi Usage - The initiative aims to enhance the convenience and efficiency of cross-border Renminbi transactions, encouraging banks to optimize document review processes and improve data sharing [3]. - It promotes a "local currency first" approach and encourages state-owned enterprises to prioritize Renminbi for international payments, thereby influencing the entire supply chain [3]. - The plan includes developing specialized service solutions to increase the proportion of Renminbi in cross-border settlements, particularly in sectors like e-commerce, high-end shipping, and large equipment exports [3].