人民币国际化在 “十五五” 规划中凸显重要性-China Local Markets Weekly_ RMB internationalization gains prominence in 15th FYP

Summary of Key Points from the Conference Call Industry Overview - The focus of the conference call is on the RMB (Renminbi) internationalization within the context of China's 15th Five-Year Plan (FYP), highlighting the strategic shift in China's approach to promoting the yuan's role in global finance and trade. Core Insights and Arguments 1. RMB Internationalization Gains Prominence - The 15th FYP emphasizes a proactive approach to RMB internationalization, aiming to establish a self-controllable cross-border RMB payment system [3][5][27]. 2. Increase in CNY Usage for Trade Settlement - Approximately 28% of China's goods trade is now settled in CNY, up from 12% in 2018, indicating significant growth in CNY-denominated transactions, particularly in ASEAN, Latin America, and Central Asia [3][5][9]. 3. Policy Push for RMB Usage - The People's Bank of China (PBoC) has increased the weight of RMB usage in cross-border transactions from 25% to 40% to encourage financial institutions to facilitate more yuan-denominated trade settlements [3][8][11]. 4. Growth in Yuan-Denominated Financing - The issuance of international debt securities in yuan has more than doubled compared to pre-COVID levels, with record levels of Dim Sum and Panda bonds being issued [3][17][18]. 5. De-Dollarization Trend - China's share of USD in foreign currency reserves has decreased significantly, with only 22% in U.S. Treasuries and 28% in total U.S. debt securities as of July 2025, down from 35% and 45% in 2019, respectively [27][28][29]. 6. Increased Utilization of CIPS - The Cross-Border Interbank Payment System (CIPS) has seen a 34% annual growth in daily turnover over the past five years, reflecting the growing acceptance of the yuan in international transactions [8][12]. 7. RMB's Role in Commodity Trade - China's position as a leading commodity importer has facilitated negotiations to settle trades in RMB, as seen in recent discussions with BHP regarding iron ore exports [8][11]. 8. RMB's Share in Global Payments - The share of RMB in global payments via SWIFT has increased from 2.3% in 2022 to an average of 3.4% over the past year, indicating a growing acceptance of the yuan in international finance [8][15]. Additional Important Insights - The strategic shift in RMB internationalization reflects a response to geopolitical tensions, particularly the US-China decoupling, and aims to enhance China's financial sovereignty [5][27]. - The growth in CNY-denominated transactions is particularly strong in regions closely tied to China's supply chain and the Belt and Road Initiative, with ASEAN countries seeing a 51% year-over-year increase in CNY transactions [11][12]. - The trend of de-dollarization is not only evident in the PBoC's holdings but also in the external assets of Chinese banks, which have seen a reduction in USD assets from 80% to 70% over three years [28][31]. This summary encapsulates the key points discussed in the conference call, focusing on the strategic developments in RMB internationalization and its implications for global finance and trade.