China sees growth in cross-border RMB use – Xinhua

Dhwani Mehta FXStreet

The latest report from the China Banking Association showed Monday, the demand for the Chinese currency, the Yuan or Renminbi (RMB), rose in cross-border transactions in the first half of this year, per Xinhua News Agency.

Additional details

“From January to June, cross-border RMB receipts and payments totaled 12.67 trillion yuan (around 1.84 trillion U.S. dollars), up 36.33% year on year.

Of the total transactions, cross-border RMB payments came in at 6.36 trillion yuan, while cross-border RMB receipts accounted for 6.31 trillion yuan.

By the end of June, the RMB's share in global payments stood at 1.76%, making it the world's fifth most important payment currency.

The RMB's share in global payments fluctuated in early 2020 due to the impact of the COVID-19 epidemic, but it has recovered.

The internationalization of the RMB is facing challenges stemming from the changing global landscape and downward pressure on the economy.”

Market reaction

Amid renewed US dollar weakness across the board and upbeat Chinese Manufacturing and Services PMIs, USD/CNY faces a double whammy and drops below 6.8500.

At the press time, the cross loses 0.25% to trade at 6.8471.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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