Do you know which countries in the world have fully supported the use of RMB for transactions? Some people may say that there should be Russia, North Korea, Pakistan and other countries that have friendly relations with the mainland, but is this really the case?
If I am here today, I will bring you an inventory of the 7 countries that have included the RMB in their official trading currencies around the world. Even at the expense of incorporating the renminbi into their own countries' official trading currencies, will there be countries such as the United States and the West?
This time, the data is based on the data on the latest "RMB Internationalization Development Process" displayed on the official website of the People's Bank of China, a well-known authoritative banking authority in mainland China, on May 17, 2024.
People's Bank of China
The "People's Bank of China", referred to as the "central bank" for short, is one of the competent institutions for the internationalization of the renminbi in the mainland, and their daily main purpose is to coordinate the establishment of coordination mechanisms such as central and local financial supervision, risk disposal, consumer protection, information sharing, etc., formulate and implement monetary policy, improve the monetary policy regulation and control system, and other competent duties.
This time, in the latest "RMB Internationalization Development Process" displayed on their official website, they gave a detailed explanation of the cooperation between the 187 countries and regions in the world that have signed RMB cross-border settlement with the mainland.
Today, because of the limited space, I will mainly talk about the "7 countries" that support the cross-border payment of mainland RMB the most actively and comprehensively participated, and even determine to include mainland RMB in their official transaction currencies.
The development strategy of great power diplomacy
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Seven countries that have included the renminbi as their official trading currency
7th: Saudi Arabia
Saudi Arabia, full name: Kingdom of Saudi Arabia, referred to as Saudi Arabia, is located in the Arabian Peninsula in southwest Asia, adjacent to the Persian Gulf, the Red Sea, Jordan, Iraq, Kuwait, Yemen, Qatar and other countries and regions, as of June 2023, the total population of Saudi Arabia is about 32.18 million.
This time, according to the official website of the People's Bank of China, Saudi Arabia supports the use of RMB settlement in detail:
Saudi Arabia has long been one of the world's largest oil exporters, and its currency decisions have a non-negligible impact on the global energy market and the entire international economy.
Saudi Arabia's inclusion of RMB as its official transaction currency means that they can directly use RMB to settle bilateral trade with China, which greatly reduces the exchange cost and exchange rate risk of cross-border transactions between companies on both sides.
Saudi high-level elite
In particular, with the deepening of economic and trade exchanges between China and Saudi Arabia, the investment activities of Saudi companies in China will also be more convenient, which will help promote the further integration of the two economies.
For China, Saudi Arabia's decision is undoubtedly a recognition of the international status of the renminbi, because it not only increases the frequency of the use of the renminbi in global trade, but also may attract more countries to consider the renminbi as an official reserve currency, which is very helpful to enhance China's influence on the international stage.
In addition, from a global perspective, Saudi Arabia's inclusion of the renminbi as its official transaction currency is also an attempt to diversify the existing international monetary system dominated by the US dollar.
For a long time, the US dollar has been the main international reserve currency, and its policy changes have often had a significant impact on the economies of other countries. The inclusion of the Saudi renminbi as the official currency of exchange will help build a more balanced and stable international monetary system, reduce the global economy's dependence on a single currency, and thus reduce potential financial risks.
In the future, with the sustained growth of China's economy and the deepening of its opening-up, the international status of the renminbi is expected to be further enhanced and make greater contributions to the stability and development of the world economy.
"China and Saudi Arabia" work together
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Seven countries that have included the renminbi as their official trading currency
6th: South Korea
South Korea, full name: Republic of Korea, is located in the south of the Korean Peninsula in East Asia, surrounded by the sea on three sides, and only the north is adjacent to North Korea across the 38th parallel demilitarized zone, as of December 31, 2022, the registered population of South Korea is slightly more than 51.439 million.
This time, according to the official website of the People's Bank of China, South Korea's support for settlement in RMB is detailed:
In recent years, with the increasingly close economic and trade exchanges between China and South Korea, the bilateral trade volume has increased year by year, and China has become South Korea's largest trading partner.
In this context, the use of third-country currencies for settlement not only increases transaction costs, but also brings exchange rate risks.
Therefore, in order to promote trade facilitation and improve economic efficiency, the South Korean government included the renminbi as the official trading currency of its country as early as possible, which is undoubtedly a recognition of the international status of the renminbi.
At the same time, it also promotes the circulation of RMB in the international financial market and lays the foundation for RMB to become an international reserve currency.
"China-South Korea" bilateral cooperation and exchanges
In fact, for South Korea, the inclusion of the renminbi as the official transaction currency not only reduces the transaction costs of economic dealings with China, but also enhances the competitiveness of Korean companies in the international market. Korean companies can directly use RMB to settle trade with China, avoiding the additional cost of exchanging third-party currencies such as US dollars and improving the efficiency of capital use.
In addition, South Korea can also make direct investment with China through the renminbi, further deepening the economic ties between the two countries.
For China, South Korea's decision is a strong support for the internationalization of the renminbi, which not only enhances the international status of the renminbi, but also helps promote the opening of China's financial market and the convertibility of the renminbi capital account.
With the wide application of the renminbi in the field of international trade and finance, China's monetary policy and economic policy will also receive more attention from the international market.
From a global economic perspective, South Korea's inclusion of the renminbi as its official transaction currency will help build a more diversified international monetary system.
The rise of the renminbi can provide more choices for countries around the world, reduce dependence on a single currency, and help maintain the stability of the global economy.
In the future, with the continuous growth of China's economy and the deepening of its opening up to the outside world, the pace of RMB internationalization will be more firm, and new contributions will be made to the stability and development of the world economy.
"China and South Korea" signed a joint cooperation
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Seven countries that have included the renminbi as their official trading currency
5th: 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 official website of the People's Bank of China, there is a detailed description of Iran's support for settlement in RMB:
Since ancient times, Iran, as an important country in the Middle East, has very rich oil resources and has a deep foundation for cooperation with the mainland in the field of energy.
Therefore, with Iran's inclusion of the renminbi as its official trading currency, it can be said that it is of very positive significance to promote the internationalization of the renminbi.
Because, with the rapid development of China's economy, the status of the RMB in the international market has gradually risen.
However, to achieve the internationalization of the renminbi, it is not enough to rely solely on the development of the domestic market.
Diplomatic developments between China and Iran
In this context, Iran's choice to include the renminbi as its official trading currency means that the renminbi's status in the international financial market has been further enhanced, which will help improve the international recognition and influence of the renminbi.
Second, Iran's inclusion of the renminbi as its official trading currency will help boost economic and trade exchanges between China and Iran: China and Iran have extensive room for cooperation in areas such as energy and infrastructure construction. Iran's inclusion of the renminbi as its official transaction currency will help reduce the exchange rate risk of enterprises between the two countries in trade and improve trade facilitation, thereby further promoting the deepening of economic and trade cooperation between the two countries.
Especially under the promotion of the "Belt and Road" initiative, China's economic and trade cooperation with countries along the route has become increasingly close, and Iran is located in the core area of the Silk Road Economic Belt, which itself has unique geographical advantages.
Therefore, Iran's inclusion of the renminbi as its official trading currency will help promote the use of the renminbi in the Middle East and further promote the regionalization of the renminbi.
In the future, with the continuous development of China's economy, the internationalization process of RMB is expected to further accelerate and make greater contributions to the prosperity and development of the global economy.
China and Iran have reached a joint cooperation
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Seven countries that have included the renminbi as their official trading currency
4th: Belarus
Belarus, full name: Republic of Belarus, is located in the western part of the Eastern European Plain, adjacent to Russia, Latvia, Lithuania, Poland, Ukraine and other countries and regions, as of January 2023, Belarus has a population of 9.2 million.
This time, according to the official website of the People's Bank of China, Belarus supports the use of RMB settlement in detail:
In recent years, China's economy has continued to develop rapidly and has become the world's second largest economy.
As the economy continues to grow, so does the renminbi's position in the international financial market: in order to further promote the internationalization of the renminbi, the Chinese government has taken a series of measures, including expanding the scope of cross-border trade settlement of the renminbi and promoting the inclusion of the renminbi in the basket of Special Drawing Rights (SDR) currencies. These measures have laid the foundation for the renminbi to enhance its status in the international financial market.
Against this backdrop, Belarus's decision to include the renminbi as its official trading currency is based on a number of considerations.
For example, in recent years, China and Belarus have achieved remarkable results in cooperation in infrastructure construction, energy, agriculture and other fields, and Belarus has chosen to include the renminbi as its official trading currency, which can be more conducive to further deepening bilateral economic and trade cooperation, reducing exchange rate risks and improving trade facilitation.
Cooperation between China and Belarus for development
Secondly, the inclusion of the renminbi as an official trading currency helps Belarus to defend itself against external economic risks: in recent years, the global economic situation has been unstable, and major international currencies such as the US dollar have been highly volatile. In this case, the inclusion of the renminbi as an official trading currency could provide Belarus with a relatively stable option for foreign exchange reserves, which is conducive to maintaining the country's economic security.
In addition, Belarus is located at the crossroads of Europe and Asia and is an important node country of the Belt and Road Initiative, and the inclusion of the RMB as the official transaction currency will help facilitate intra-regional trade and investment, and promote the economic development of countries along the "Belt and Road".
From a global perspective, the inclusion of the renminbi in Belarus as an official trading currency is of positive significance to the internationalization of the renminbi.
On the one hand, this measure will help improve the recognition and use of the renminbi in the international financial market, and further expand the international influence of the renminbi.
On the other hand, it will also help promote the diversification of the international monetary system, reduce the dependence of the global economy on a single currency, and improve the stability of the international financial market.
In the future, with the continuous enhancement of China's economic strength, the status of the renminbi in the international financial market will be further improved, injecting new vitality into the development of the global economy.
Belarusian high-level
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Seven countries that have included the renminbi as their official trading currency
3rd: Pakistan
Pakistan, full name: Islamic Republic of Pakistan, is located in the northwest of the South Asian subcontinent, adjacent to India, China, Afghanistan, Iran, the Arabian Sea and other countries and regions, as of 2023, the total population of Pakistan is about 240 million.
This time, according to the official website of the People's Bank of China, Pakistan supports the use of RMB settlement in detail:
As China's all-weather strategic cooperative partner, Pakistan has always had extensive cooperation in many fields.
In particular, under the Belt and Road Initiative, the construction of the China-Pakistan Economic Corridor has become an important bridge connecting the Eurasian continent, bringing unprecedented development opportunities to the two countries.
Against this backdrop, the Pakistani government's decision to include the renminbi in its official trading currency system is undoubtedly of far-reaching significance.
For example, traditional international trade is mostly settled in US dollars, but fluctuations in the US dollar exchange rate often bring uncertainty to bilateral trade. The use of RMB settlement can reduce transaction costs, reduce exchange rate risks, and improve trade efficiency. This is a win-win option for businesses from both countries and will help further stimulate the potential of China-Pakistan trade.
Bilateral cooperation between China and Pakistan
Secondly, Pakistan's inclusion of the renminbi as the official trading currency is also a recognition of the international status of the renminbi: as China's economy continues to grow, the acceptance of the renminbi in the international market has gradually increased. Pakistan's move is not only a reflection of confidence in China-Pakistan economic cooperation, but also an affirmation of the stability and reliability of the RMB, which is crucial to the internationalization of the RMB.
Also, as the circulation and use of RMB in Pakistan increases, other countries and businesses may also follow this trend and increase their holdings and use of RMB. This ripple effect will further expand the international influence of the renminbi and promote its use around the world.
In addition, the internationalization of the renminbi will also contribute to the construction of a more diversified international monetary system.
In the past, the US dollar has always occupied the dominant position in the international monetary system, but its unity has also brought many problems, and the internationalization of the RMB can add new vitality to the international monetary system and promote the balance and stability of the monetary system.
In the future, as more countries and regions accept and use the RMB, the RMB is expected to play a more important role in the international monetary system and provide new impetus for the prosperity and stability of the global economy.
Friendship between China and Pakistan
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Seven countries that have included the renminbi as their official trading currency
2nd: Russia
Russia, the full name of the "Russian Federation", itself spans the Eurasian continent and borders 14 countries, with a total area of 17,098,200 square kilometers, making it the largest country in the world in terms of land area, with a permanent population of about 146 million as of April 2023.
This time, according to the official website of the People's Bank of China, there is a detailed description of Russia's support for settlement in RMB:
Russia has always been China's neighbor and an important economic partner, and trade between the two countries can be said to be increasingly frequent.
Therefore, in order to facilitate bilateral trade, reduce dependence on third-party currencies, and reduce transaction costs, Russia has long chosen to include the yuan in its official transaction currency system. Behind this decision is the common desire of China and Russia to deepen economic cooperation and enhance financial stability.
With the establishment of the renminbi as the official trading currency in Russia, a series of specific measures have also been launched.
Bilateral cooperation between China and Russia
For example, Russia's foreign exchange reserves began to include RMB assets, Russian foreign trade enterprises can directly use RMB for settlement, and financial institutions in Russia are also allowed to open RMB accounts. These measures have greatly promoted the circulation and use of the renminbi in Russia, and also provided more convenience and choice for enterprises in the two countries.
Second, the increased use of the renminbi in Russia will help expand the renminbi's share in international transactions, thereby reducing dependence on traditional international currencies such as the U.S. dollar and increasing China's voice in the global financial system.
Finally, it is also a manifestation of China's active participation in global financial governance and its promotion of a fairer and more equitable international monetary system.
In the future, with the continuous growth of China's economy and the deepening of its opening up to the outside world, the pace of RMB internationalization will continue to accelerate, and its role in the international financial system will become increasingly prominent.
The development of Sino-Russian cooperative diplomacy
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Seven countries that have included the renminbi as their official trading currency
The 1st
This "first country" can be said to be one of the best developed countries in the world at present, and it has a strong industrial system, and its political, diplomatic, military, cultural and other major aspects have a strong influence on the world.
This time, according to the official website of the People's Bank of China, the "first country" supports the use of RMB settlement in detail:
For a long time, this "first country", as one of the most important economies in the world, has deep economic and trade exchanges with China.
With the advancement of the Belt and Road Initiative, the cooperation between the two countries in the fields of infrastructure construction, trade and investment has become increasingly close.
In this context, the government of the "first country" has long cooperated with China to incorporate the renminbi into its official trading currency system in order to promote bilateral trade facilitation, reduce exchange rate risks, and improve economic efficiency. This decision not only provides more settlement convenience for enterprises in both countries, but also paves the way for the regionalized use of the renminbi.
Secondly, the establishment of the renminbi as the official trading currency of the "first country" can also be said to be an important achievement of the renminbi internationalization strategy.
This means that the international recognition of the renminbi has been further enhanced, which will help to enhance the attractiveness of the renminbi in the international financial market. As the use of the renminbi expands in this "first country", other countries are likely to follow suit, driving the use of the renminbi globally.
Modern urban construction
In addition, the inclusion of the renminbi as the official transaction currency of this "first country" has an exemplary effect on promoting regional and international monetary cooperation: in the traditional international monetary system, the dominant currencies such as the US dollar and the euro occupy a dominant position, but a diversified monetary system is more conducive to the stability of the global economy. This decision by the "first country" could inspire more countries to consider including the renminbi in their foreign exchange reserves or trading systems, thereby promoting regional and global economic integration and currency diversification.
Finally, the inclusion of the renminbi as the official trading currency of this "first country" is of far-reaching significance to the internationalization process of the renminbi, which not only enhances the international status of the renminbi, but also lays the foundation for the future global layout of the renminbi.
In the future, with the continuous growth of China's economy and the continuous expansion of opening up to the outside world, the international influence of the RMB will surely increase, and it will become an indispensable and important force in the global economy.
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.
Beautiful views of the city
summary
The "7 countries" mentioned above are the "7 countries" that support mainland RMB cross-border payment and have determined to include mainland RMB in the official transaction currency of their countries among the 187 countries and regions in the world that have signed RMB cross-border settlements with the mainland in the latest "RMB Internationalization Development Process" displayed on the official website of the People's Bank of China.
Looking back at the internationalization of the renminbi in the mainland, we can see that the Chinese government has long been committed to promoting the expansion of the use of the renminbi to the field of international trade and finance.
From 2009, when the RMB was piloted for cross-border trade settlement, to 2016, when the RMB was officially added to the International Monetary Fund's (IMF) Special Drawing Rights (SDR) basket of currencies, the international status of the RMB has been gradually recognized and enhanced.
As a result of these efforts, the renminbi's status in the international market has gradually risen, and more and more countries and regions have begun to accept and use the renminbi.
That's a really great achievement.
Family, what do you think?
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