SHANGHAI, Nov. 8, 2019 /PRNewswire/ — The internationalization of China’s currency renminbi (RMB) has advanced to a higher level, said experts attending a forum on RMB internationalization facilitating construction of the pilot free trade zones (FTZs) on Wednesday.
RMB internationalization has experienced fast development in the last decade, said Chen Yulu, deputy governor of the People’s Bank of China (PBOC), China’s central bank.
Cross-border RMB use has developed from sporadic border trade settlement to the application in an all-round way, and expanded from current account to capital account, from trade to financial transactions, from banks and enterprises to individuals, and from simple to complicated operations, said Chen.
RMB internationalization has seen rapid development in capital market, and investment in RMB assets by central banks, multinational financial institutions, and asset management firms have been growing. By far, 62 of the world’s top 100 asset management companies have entered China.
As China’s financial industry continues to deepen two-way opening up, RMB internationalization and China’s FTZ construction have created a coordinated effect. The innovative policies in FTZs provide RMB internationalization with fertile ground to grow vigorously.
“Since the establishment of the Shanghai pilot FTZ, China has launched 18 pilot FTZs. The deepening of the RMB internationalization and FTZ construction has become carriers of China’s participation in global economy and institutional innovation,” said Wang Xiquan, chairman of the Board of Supervisors of the Bank of China (BOC), one of the country’s big four state-owned lenders.
The PBOC has launched a string of pilot measures in Shanghai FTZ for capital account convertibility, including prudential management of cross-border financing, two-way RMB capital pools of multinational enterprises, and some of them have been introduced to other FTZs and even the whole country.
“The Lingang Special Area of Shanghai FTZ will deepen, broaden and strengthen opening-up in every aspect and at higher levels, aiming to build a special zone with international influence and competitiveness,” said Wu Wei, an official of Shanghai Pilot FTZ Lingang Special Area.
The forum was held by the PBOC and the BOC, and supported by China Economic Information Service (CEIS) of Xinhua News Agency.
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