RMB Cross-Border Use Of Activity Continues To Improve

< p > June 13th, < a href= "//www.sjfzxm.com/news/index_cj.asp" > Bank of China < /a > April 2014 cross-border RMB index (CRI) showed that the activity of RMB in cross-border use continued to rise.

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In September 2013, Bank of China released the cross-border RMB index for the first time in the world in September 2013, thus becoming the first banking financial institution in China to independently compile and publish relevant indices of RMB internationalization.

This index can be regarded as a vane to reflect the development of RMB internationalization.

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In April 2014, the CRI index of Bank of China (P) was 242 points, down 36 points from the end of the first quarter, but the overall trend of the index has not changed.

From the 1-4 month as a whole, cross-border RMB business has achieved a 70% rapid growth compared with the same period last year.

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< p > a clear trend is that the use of RMB in cross-border direct investment activities (a href= "//www.sjfzxm.com/news/index_cj.asp" > activity < /a) continues to improve.

In April, the total amount of RMB settlement under direct investment was 75 billion 910 million yuan, an increase of 231.48% over the same period last year.

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< p > China bank analysts pointed out that with the gradual liberalization of China's capital account and the gradual implementation of the gold reform policy such as the Shanghai Free Trade Zone, the cross-border movement of RMB under the capital account will promote the cross-border use of RMB to become more active.

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< p > > a href= "//www.sjfzxm.com/news/index_cj.asp" > RMB < /a > the scope of use abroad is also more diversified, and the regional distribution is more reasonable.

From the perspective of the distribution of RMB and the actual receipts and payments in the mainland of China, the Asian region still occupies a leading position, and the share of Europe, America and Australia has gradually increased.

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< p > Hongkong still has the largest volume of business, accounting for more than 53% of the total amount of cross-border RMB settlement. Singapore and Taiwan followed closely, and their cross-border RMB settlement with mainland China increased by more than doubled compared to the same period last year, accounting for 10.6% and 5% respectively.

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< p > Singapore plans to introduce a tool to provide overnight liquidity for Renminbi, as trade pactions using Renminbi are increasing.

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This will help to enhance Singapore's position in the competition of offshore RMB business, and it is also another progress of RMB internationalization efforts. P

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< p > the Singapore Monetary Authority (MAS) said on its website that the tool will be launched in July 1st.

It will provide up to 5 billion yuan (US $805 million 300 thousand) overnight funds to any financial institution in Singapore on any specific date.

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< p > this tool complements the existing RMB instruments of the HKMA.

Existing tools allow banks to borrow regular renminbi funds for purposes of trade, direct investment and market stability.

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"P >" with the increasing use of Renminbi activities in Singapore, overnight RMB liquidity tools will help ease the financial stress of financial institutions in daily settlement.

This will provide a favorable environment for the continued expansion of Renminbi activities in Singapore, "said Jacqueline Loh, a senior executive at the HKMA.

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