Do you know how powerful the influence of the renminbi cross-border payment system established by the mainland is, and which countries in the world have begun to apply to join it in an all-round way and develop together?
Today's words here, what I bring to you is "the world, the application to fully join the Chinese currency cross-border payment system of 7 countries", come and take a look, in the current development process of RMB internationalization, which country in the world is most optimistic about the development of the mainland's economic circle, will there be the United States and the West and other countries?
This time, the data is based on the data on the latest display of the "Countries Joining the Chinese Cross-border Payment System" on the official website of the People's Bank of China, a well-known authoritative banking authority in mainland China, on April 24, 2024.
People's Bank of China
Today's "People's Bank of China", referred to as the "central bank", is the main organization of the mainland's RMB cross-border payment system, their daily main is to coordinate the establishment of central and local financial supervision, risk disposal, consumer protection, information sharing and other coordination mechanisms, the formulation of financial management departments and local financial supervision accountability measures and undertake supervision and accountability work and other supervisory responsibilities, so the content they release is still relatively referenced, everyone can come together to learn this "knowledge", it is also possible.
This time, in the latest "Countries Joining the Cross-border Payment System for Chinese and Currency" displayed on their official website, they gave a detailed introduction to the many countries that have joined the mainland RMB cross-border payment system.
Today, because of the limited space, I will mainly talk about the "7 countries" that have joined the mainland RMB cross-border payment system with the most active and highest participation.
RMB cross-border payment system
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Seven countries that have applied to fully join the Chinese RMB cross-border payment system
7th: Indonesia
Indonesia, full name: Republic of Indonesia, referred to as Indonesia, is located in Southeast Asia, adjacent to Timor-Leste, Malaysia and other countries and regions, the country consists of about 17,508 islands, is the world's largest archipelago country, as of December 2022, Indonesia's total population is about 276 million people.
This time, according to the "People's Bank of China", the detailed introduction of Indonesia's entry into the mainland RMB cross-border payment system:
In recent years, with the adjustment of the global economic pattern, the internationalization process of the mainland RMB has been accelerating.
As a kind of financial infrastructure, the RMB cross-border payment system provides convenient, efficient and low-cost cross-border RMB settlement services for all countries.
For a long time, Indonesia, as an important economy in Southeast Asia, is of great significance to the internationalization of the mainland RMB by joining the RMB cross-border payment system.
As the mainland's third largest trading partner in Southeast Asia, Indonesia has close economic and trade exchanges between the two sides, and after they join the RMB cross-border payment system, more enterprises and financial institutions can use RMB for cross-border settlement, reduce exchange rate risks, and improve trade facilitation.
China-Indonesia bilateral trade talks
This will help promote the wide application of RMB in international payment, investment, reserves and other fields, and enhance the mainland's voice in global financial governance.
Second, Indonesia's accession to the RMB cross-border payment system will help promote financial cooperation between the mainland and Southeast Asia, after all, Southeast Asia is an important partner of the mainland's "Belt and Road" initiative, and financial cooperation is a key support for the joint construction of the "Belt and Road".
The access to the RMB cross-border payment system will help deepen the financial cooperation between the mainland and Southeast Asia, and provide strong support for the construction of the "Belt and Road".
In addition, the opening up of the financial market is a key part of the internationalization of the mainland RMB, and through the introduction of financial institutions in Indonesia and other countries, the RMB cross-border payment system will further broaden the participants of the mainland financial market and improve market activity, which will help promote the deep integration of the mainland financial market and the global market, and enhance the international competitiveness of the mainland financial market.
Finally, after Indonesia joins the RMB cross-border payment system, the mainland central bank can cooperate with Indonesia in currency swaps and other ways to deal with a possible financial crisis, which will help improve the flexibility and diversity of the mainland's monetary policy and provide a strong guarantee for maintaining the mainland's financial stability.
In the future, the mainland is expected to more actively promote financial cooperation with Indonesia and other countries, jointly promote the internationalization of the RMB, and contribute China's wisdom to the global economic development.
Indonesian Chinese Chamber of Commerce
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Seven countries that have applied to fully join the Chinese RMB cross-border payment system
6th: United Arab Emirates
The United Arab Emirates, full name: United Arab Emirates, is composed of 7 emirates, the mainland is located in the eastern part of the Arabian Peninsula, adjacent to Saudi Arabia, Oman, the Persian Gulf and other countries and regions, as of June 2023, the total population of the UAE is about 10.17 million.
This time, according to the "People's Bank of China", the detailed introduction of the UAE's entry into the mainland RMB cross-border payment system:
In recent years, the internationalization of the renminbi in mainland China has been accelerating, and a series of important achievements have been achieved.
Among them, the UAE joined the Chinese RMB cross-border payment system, which became an important milestone in promoting the internationalization of RMB.
The UAE has long been arguably the world's most important oil producer and exporter, has the world's largest gold market, and is also an important trading partner of the continent in West Asia and North Africa.
With the UAE's accession to the RMB cross-border payment system, this means that more international trade and investment can be settled in RMB, thereby enhancing the RMB's position in the international monetary system.
The UAE and China signed a financial cooperation agreement
Secondly, in the context of increasingly frequent trade exchanges between the UAE and the mainland, the addition of the RMB cross-border payment system will help reduce the exchange rate risk of enterprises, simplify the settlement process, improve the efficiency of trade settlement, and further promote bilateral economic and trade exchanges.
At the same time, this move will also radiate to other countries, drive more countries to accept and use the RMB, and enhance the international influence of the RMB.
In addition, the opening of the capital account is one of the core contents of the internationalization of the RMB, and the opening and integration of the capital market of the UAE, as an international financial center, will provide strong support for the opening of the RMB capital account.
On this basis, the mainland can further promote the opening of the renminbi capital account, realize the free flow of renminbi in the international financial market, and enhance the international status of renminbi.
In addition, the mainland financial market will also be better integrated with the global financial market, attract more international capital to invest in the mainland market, and further enhance the influence of the mainland financial market.
Therefore, under the current international economic and financial situation, the mainland is expected to take a more active role in seizing this favorable opportunity in the future, further promote the internationalization of the renminbi, and continuously enhance the status of the renminbi in the international monetary system, so as to lay a solid foundation for the sustained prosperity and stable development of the mainland economy.
UAE cityscapes
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Seven countries that have applied to fully join the Chinese RMB cross-border payment system
5th: Brazil
Brazil, full name: Federative Republic of Brazil, is the largest country in South America, adjacent to Uruguay, Argentina, Paraguay, Bolivia, Peru, Colombia, Venezuela, Guyana, Suriname, French Guiana and other countries and regions, with a total population of about 203 million people at the end of 2022.
This time, according to the "People's Bank of China", the detailed introduction of Brazil's entry into the mainland RMB cross-border payment system:
For a long time, Brazil, as an important trading partner of China, can be said to have increasingly close cooperation in the economic and financial fields.
In particular, in 2015, Brazil officially joined the Chinese Cross-border Payment System (CIPS), which became an important milestone in the process of promoting the internationalization of the renminbi in the mainland.
This is because Brazil itself is rich in natural resources and labor resources, and is an important supplier of raw materials and agricultural products to China in the world.
At the same time, China is Brazil's largest trading partner, and bilateral trade continues to grow.
In this context, promoting the direct exchange and settlement of bilateral currencies will help reduce exchange rate risks, improve the efficiency of trade settlement, and further promote bilateral economic and trade exchanges.
Cooperation and exchanges between Brazil and China
Secondly, Brazil, as the world's largest emerging market, has a greater influence in international financial affairs, and the participation of the Central Bank of Brazil in CIPS means that more countries and regions recognize the international status of the renminbi and help expand the use of the renminbi in the world. Brazilian financial institutions can also take advantage of CIPS's efficient and convenient settlement services to further expand their business with the Chinese market and provide more convenience for bilateral investors.
In addition, with the advancement of RMB internationalization, the demand for RMB assets from domestic and foreign investors is rising, and the integration of Brazil's financial market into the world's important economy will help enrich the variety of RMB investment products and provide more choices for global investors.
In addition, the direct exchange of the Brazilian currency, the real, with the renminbi, helps to stabilize the bilateral exchange rate, reduce market volatility, and create a favorable investment environment for investors in both countries.
As we all know, in the international financial system, the US dollar has dominated for a long time, which has led to other countries and regions being exposed to greater risk of exchange rate fluctuations in international trade and investment.
The internationalization of the renminbi, especially the participation of emerging market countries such as Brazil in CIPS, will help promote the formation of a multi-currency system and mitigate the risks posed by over-reliance on the US dollar.
Therefore, in the context of the current uncertainty of the global economy, Brazil's accession to CIPS will further highlight the important role of the RMB in the international financial field and contribute positive energy to the economic development of the mainland and global economic governance.
Brazil's high-level elite
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Seven countries that have applied to fully join the Chinese RMB cross-border payment system
4th: Iraq
Iraq, full name: Republic of Iraq, is located in southwest Asia, adjacent to Turkey, Iran, Syria, Jordan, Saudi Arabia, Kuwait, the Persian Gulf and other countries and regions, as of 2022, the total population of Iraq is about 43.35 million.
This time, according to the "People's Bank of China", the detailed introduction of Iraq's entry into the mainland RMB cross-border payment system:
Iraq's trade with the mainland has always been very close, and with the signing of a memorandum of understanding between the Central Bank of Iraq and the People's Bank of China to join CIPS, Iraq will gradually work with China to promote technology docking and regulatory development to ensure that financial institutions in both countries can use RMB for cross-border payments.
After the completion of the docking, Iraqi financial institutions will be able to carry out cross-border RMB payment business through the mainland's RMB cross-border payment system, so as to provide more convenient and efficient currency exchange services for enterprises and investors of the two countries.
Iraq and China signed a financial cooperation agreement
Secondly, Iraq's accession to CIPS is of great significance for the internationalization of the renminbi on the mainland: on the one hand, it will help to expand the share of the renminbi in the international market. At present, the renminbi has become the world's fourth largest payment currency, but its influence in the Middle East still needs to be improved, and Iraq's accession to CIPS, as a major oil producer and exporter in the region, will help promote the use of renminbi in international oil transactions and further improve the international status of the renminbi.
On the other hand, Iraq's accession to CIPS will help deepen financial cooperation between the two countries, and the operation of the RMB cross-border payment system will help reduce the investment and trade costs of Chinese enterprises and individuals in Iraq, and reduce the risk of exchange rate fluctuations.
At the same time, it will also provide more access to financing for Iraqi companies and boost their domestic economic development.
On this basis, China and Iran can also explore more cooperation in the financial field, including local currency swaps and bond issuance.
In addition, Iraq's accession to CIPS will also help promote the implementation of the Belt and Road Initiative, because the internationalization of the RMB is one of the important pillars of the Belt and Road Initiative, through CIPS, Chinese enterprises can more easily carry out cross-border investment and trade, and further expand cooperation with Iraq and other Middle Eastern countries. This will help promote the economic integration and common development of the mainland and the countries along the Belt and Road.
We believe that in the future, with the joint efforts of all parties, the process of RMB internationalization will continue to move forward and contribute to the building of a community with a shared future for mankind.
High-level Iraqi visit to China
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Seven countries that have applied to fully join the Chinese RMB cross-border payment system
3rd: Iran
Iran, full name: Islamic Republic of Iran, is located in southwest Asia, adjacent to Turkmenistan, Azerbaijan, Armenia, Turkey, Iraq, Pakistan, Afghanistan, the Persian Gulf, the Gulf of Oman and other countries and regions, as of September 2023, Iran's total population is about 88.55 million.
This time, according to the "People's Bank of China", the detailed introduction of Iran's entry into the mainland RMB cross-border payment system:
For a long time, Iran, as an important Asian economy and oil exporting country, its accession to the RMB cross-border payment system can also be said to be of great significance to the internationalization of the mainland RMB.
Because, at present, in the world, although the US dollar and the euro are still the main currencies for international trade and investment, as Iran and other countries take the initiative to join the RMB cross-border payment system, it means that more countries and regions will accept RMB as a settlement currency in the future, thereby enhancing the status of RMB in the international financial market.
In addition, in the current international trade environment, the exchange rate of the US dollar and the euro fluctuates greatly, increasing the risk of enterprises and financial institutions, Iran's entry into the RMB cross-border payment system will help reduce the exchange rate risk of enterprises and financial institutions, and improve the competitiveness of RMB in the international financial market.
Iran-China Friendship Exchange Meeting
Second, with Iran's accession to the system, bilateral trade and investment between the mainland and Iran and other countries will be more facilitated, further promoting bilateral economic and trade exchanges.
In addition, the RMB cross-border payment system can also provide support for mainland enterprises to "go global", helping enterprises to use RMB for settlement in the process of overseas investment and mergers and acquisitions more conveniently.
Finally, Iran's accession to the RMB cross-border payment system will help promote the implementation of the mainland's Belt and Road Initiative, because the "Belt and Road" initiative itself aims to promote infrastructure construction and economic cooperation among countries along the route, and the promotion of the RMB cross-border payment system provides a convenient and low-cost means of settlement for countries along the route. This can be said to be very helpful to promote trade and investment between countries along the Belt and Road, and further promote regional economic integration.
In the future, with the joint efforts of the mainland government and market, the process of RMB internationalization will definitely continue to advance steadily, contributing more to the mainland's economic development and global economic governance.
High-level meetings between Iran and China
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Seven countries that have applied to fully join the Chinese RMB cross-border payment system
2nd: Russia
Russia, the full name of the "Russian Federation", itself spans the Eurasian continent, borders 14 countries, with a total area of 17,098,200 square kilometers, is the largest country in the world, as of January 1, 2023, the permanent population of Russia is about 146 million.
This time, according to the "People's Bank of China", the detailed introduction of Russia's entry into the mainland RMB cross-border payment system:
In recent years, with the adjustment of the global economic pattern and the transformation of the international financial system, the internationalization process of RMB has been accelerating, and Russia, as an important economic and trade partner of the mainland, can be said to have attracted much attention for the monetary cooperation between the two countries.
Especially in the context of intensifying trade frictions between China and the United States, strengthening monetary cooperation between China and Russia can help reduce exchange rate risks in economic and trade exchanges between the two countries and stabilize bilateral economic and trade relations.
Moreover, the multi-level cooperation between China and Russia in the financial field in recent years, including local currency swaps and direct currency transactions, has also laid the foundation for the implementation of the RMB cross-border payment system in Russia.
Background of cooperation between Russia and China
Second, in terms of cooperation, Russia's accession to the RMB cross-border payment system will allow enterprises and individuals of the two countries to use their own currencies for cross-border settlement, reduce exchange rate risks and handling fees, and improve trade facilitation.
In addition, China-Russia monetary cooperation can also help promote the position of the renminbi in the international market and increase the share of the renminbi in global trade and financial transactions.
After all, Russia itself is an important global energy exporter, and the expansion of the RMB cross-border payment system will be beneficial to the mainland's voice in the global energy market.
Finally, Russia's accession to the RMB cross-border payment system is of practical significance to the mainland's financial security:
1. Reduce dependence on the US dollar: The monetary cooperation between China and Russia will help reduce the mainland's dependence on the foreign exchange market and reduce the potential threat of US dollar hegemony to the mainland's financial security.
2. Enhance the autonomy of monetary policy, the expansion of the RMB cross-border payment system will help the mainland play a greater role in the international monetary system and improve the autonomy of monetary policy.
3. Enhance the anti-risk capacity of the financial system, and the financial cooperation between China and Russia will help the financial markets of the two countries to deeply integrate and jointly respond to global financial risks.
Under the new historical conditions, China and Russia are expected to continue to deepen financial cooperation in the future, jointly respond to international financial risks, promote the internationalization of the RMB, and make positive contributions to the reform of the global economic governance system.
Russian high-top
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Seven countries that have applied to fully join the Chinese RMB cross-border payment system
The 1st
This "first country" can be said to be one of the best developed countries in the world, with a strong industrial system, developed agriculture and manufacturing, and its political, diplomatic, military, cultural and other major aspects have a strong influence on the world.
This time, according to the "People's Bank of China", the detailed introduction of this "first country" to join the mainland RMB cross-border payment system:
For a long time, as a friendly neighbor of the mainland, this "first country" has always maintained close cooperation in the economic, political, and cultural fields.
Especially in the financial sector, the central bank of the "first country" officially joined the RMB Cross-border Payment System (CIPS) in 2019, which means that their financial institutions can use RMB for cross-border payments, improving the convenience of currency swaps and settlements between the two countries, which can be said to be very helpful to strengthen the financial cooperation between the two countries, making trade and investment settlement between the two countries more convenient and reducing transaction costs.
On this basis, the mainland can further promote the interconnection of financial markets with this "first country", provide more financing channels for enterprises of the two countries, and support the development of the real economy.
Modernization, development, and construction
Secondly, the "first country" to join the RMB cross-border payment system will also help promote the internationalization of the RMB in the region, through their "external bridgehead", the pace of RMB internationalization will be further accelerated, providing strong support for mainland enterprises to enter the global market.
Moreover, with the continuous expansion of the RMB cross-border payment system, the mainland's voice in the international financial market will definitely be gradually improved.
In this context, the mainland can better participate in global financial governance and make greater contributions to the stability and development of the international financial system.
Finally, the entry of this "first country" into the RMB cross-border payment system will help realize the spillover effect of the mainland's monetary policy, and the mainland can use it to transmit monetary policy and influence the global economy by promoting the internationalization of the RMB, which is of great significance for maintaining the mainland's macroeconomic stability and achieving high-quality development.
So when I say this, I believe that the family must know which country they are talking about "the first country", and here, everyone can also be the same as before, you can put the "name of the first country" on our screen together, or you can also come to the comment area, and everyone can talk about it together.
International cityscape
summary
The "7 countries" mentioned above are the top "7 countries" with the highest participation and the most active participation among the "countries joining the Chinese RMB cross-border payment system" newly displayed on the official website of the People's Bank of China.
The RMB Cross-Border Payment System (CIPS), which we started in China in 2015, aims to promote the internationalization of the RMB, so that financial institutions that join the system can easily conduct business such as trade payments and remittances settled in RMB.
In the context of China's increasing economic influence, so far, 984 financial institutions in more than 97 countries and regions have joined, and the main reason for many institutions to join the system is "to provide RMB payment services to customers around the world".
In fact, the meaning is that although the US dollar payment system is still very creditable, as their system has repeatedly become a tool for the US to impose economic sanctions on countries with which it has contradictions, many countries feel that their sense of security is no longer so solid.
Therefore, for the rising us, we have become more and more a "responsible power" in the international community, and naturally have become the first or second choice of some countries.
I believe that in the future, the internationalization of our RMB will go more and more smoothly and become a "new economic circle" ahead of the world.
Family, what do you think?
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