source: central bank
2020 RMB internationalization report column ② more foreign trade enterprises choose RMB for cross-border collection and payment
People's Bank of China
According to the questionnaire of the people's Bank of China on foreign trade enterprises, since 2019, foreign trade enterprises have high enthusiasm to participate in cross-border RMB business. As of the fourth quarter of 2019, 84.6% of enterprises chose RMB as the main currency for cross-border settlement
from the perspective of enterprise types, among the enterprises that have carried out cross-border RMB settlement business, foreign-invested enterprises and enterprises invested in Hong Kong, Macao and Taiwan have the highest proportion, 88% and 89% respectively. Large enterprises prefer to use RMB for cross-border trade and investment settlement, accounting for 89%
Figure 1 types of enterprises carrying out cross-border RMB settlement business
data source: People's Bank of China
from the perspective of the driving factors for enterprises to choose cross-border RMB settlement, the fluctuation of RMB exchange rate has increased due to the influence of external factors such as Sino US trade friction since 2019. Many enterprises choose cross-border RMB business as a means for enterprises to avoid exchange rate risk, accounting for 64.7%. In addition, simple settlement process, reducing settlement costs and facilitating enterprise financial accounting and fund management are also the main reasons for enterprises to choose to carry out cross-border RMB business Reasons, accounting for 43.2%, 36.8% and 32% respectively
the survey shows that foreign-related enterprises hope to continue to maintain the stability and continuity of cross-border RMB policies, accelerate the opening of capital markets, further improve RMB internationalization infrastructure, optimize cross-border RMB business processes, and increase policy publicity and training
Figure 2 driving factors for enterprises to choose cross-border RMB settlement
data source: People's Bank of China
note 1: since 2018, the people's Bank of China has carried out a nationwide questionnaire on the cross-border use of RMB. The surveyed enterprises are distributed in 500 enterprises in 31 provinces, covering 16 industries such as agriculture, forestry, animal husbandry, fishery, mining and manufacturing, including five economic types such as state-owned, private and foreign investment.
extended reading the people's Bank of China issued the RMB internationalization report 2020 the special column of the RMB internationalization report 2020 | ① the use of RMB in surrounding countries and along the" the Belt and Road"