Abstract：The Bank of China has issued an action plan to support foreign economic and trade enterprises in expanding the cross-border use of RMB to promote trade and investment facilitation. The main contents include: expanding the scale of cross-border RMB settlem
Currently, China is facing a new global economic situation, and the RMB will play a more important role in foreign economic and trade exchanges. The report of the 20th National Congress of the Communist Party of China proposes "orderly promotion of RMB internationalization", and the Bank of China actively implements the spirit of the 20th National Congress of the Communist Party of China. In accordance with the policy requirements of the Ministry of Commerce and the People's Bank of China, such as the "Circular on Further Supporting Foreign Trade and Economic Cooperation Enterprises to Expand the Cross-border Use of RMB to Facilitate Trade and Investment", The Bank of China has formulated the Action Plan for Supporting Foreign Trade and Economic Cooperation Enterprises to Expand the Cross-border Use of RMB to Promote Trade and Investment Facilitation. The Bank of China adheres to the RMB internationalization business as the strategic business of the whole bank, and will comprehensively improve the operational quality and efficiency in the RMB internationalization business field, support foreign economic and trade enterprises to actively adapt to the new situation, seize the development opportunities of RMB internationalization, further facilitate the use of RMB for cross-border trade and investment, and better meet the market demands of foreign economic and trade enterprises such as transaction settlement, investment and financing, and risk management.
Expand the scale of cross-border RMB settlement and financing services. Provide comprehensive financial service solutions for the financial needs and practical scenarios of various customer groups such as "going global" enterprises and the World Top 500. Continue to expand the coverage of basic cross-border RMB settlement services such as trade in goods, service trade, and direct investment, and provide cross-border RMB settlement services for domestic and foreign market entities with no less than 30 trillion yuan in 2023.
Improve the level of cross-border RMB settlement facilitation services. Continue to improve the facilitation services for cross-border RMB business with companies, and expand the "white list" of foreign economic and trade enterprises participating in the facilitation services. Optimize the service process of "cross-border inward remittance through train" to provide foreign trade enterprises with intelligent processing and rapid accounting services for cross-border inward remittance. Seize favorable interest rate and exchange rate market opportunities, actively provide domestic and overseas linkage trade financing services, help foreign economic and trade enterprises reduce financing costs, and expand the circulation and use of RMB in the onshore and offshore markets.
Increase support for enterprises in new forms of foreign trade. Vigorously support the development of new forms of foreign trade such as cross-border e-commerce and market procurement trade. In 2023, the scale of cross-border RMB settlement under the new forms of foreign trade will not be less than 350 billion yuan. Deeply explore the financial needs of cross-border e-commerce customers, and continuously follow up cross-border e-commerce and payment institution services. Support the integration of procurement and trade pilot areas in various markets with local market procurement and trade online information platform systems to improve service quality and efficiency.
Promote the development of pricing, settlement, and financing in the field of bulk commodities. In global commodity trading centers such as Singapore and London, we will promote the use of RMB for pricing, settlement, and financing by central enterprises, state-owned enterprises, commodity trading, engineering contracting, and other upstream enterprises, and fully serve the RMB business of large energy companies.
Better provide securities investment services under the interconnection of capital markets. Cooperate with financial peers to jointly promote cooperation in cross-border RMB settlement agency, custody, capital transactions, and other aspects. Follow closely regulatory policy guidance, optimize services for various "introduced" institutional investors, assist overseas institutions in smoothly entering the domestic capital market, deeply understand the potential needs of overseas institutional investment customers, and provide a professional perspective of BOC in terms of policy provisions, macroeconomic, and investment transactions; Actively assist domestic "going global" financial investment customers in finding business opportunities, and help "going global" customers seize innovative cross-border business opportunities such as national, local, and partial free trade zones.
Improve personal cross-border RMB settlement service capabilities. Continue to provide multi-scenario personal cross-border RMB settlement services, further enhance cross-border integrated service capabilities, optimize financial services such as cross-border RMB salary remittance and cross-border wealth management through improving service processes and internal system construction, and better respond to customers' demand for salary remittance and cross-border wealth management.
Continue to provide RMB internationalization services in key development and cooperation areas. Focus on following up the major national economic and trade cooperation processes such as the high-quality co construction of the "the Belt and Road" financial artery, the implementation and effectiveness of the RCEP mechanism, closely follow up the construction progress of free trade zones or special policy areas such as the Hengqin Guangdong Macao Deep Cooperation Zone, Hainan Free Trade Port, and Shanghai New Port Area, and continue to provide cross-border RMB settlement, loans, trade financing and other RMB internationalization businesses in these key areas.
Enrich the types of products and services in the offshore RMB market. Increase market making and quotation efforts for mainstream offshore RMB products to continuously provide liquidity for the market. Continue to strengthen cooperation with exchanges in the Asia Pacific region, explore innovative RMB products, and support more enterprises to issue CDRs and GDRs. Using our experience in bond issuance, we have tailored financing frameworks and RMB bond issuance plans for enterprises and mainland provincial and municipal governments interested in issuing RMB bonds in developed financial markets such as Hong Kong.
Strengthen RMB clearing services for domestic and foreign enterprises and financial institutions. Utilize BOC's overseas institutions in 62 countries and regions, especially the 13 designated as local RMB clearing banks by the People's Bank of China, to build a rich network of overseas institutions and clearing banks, carry out RMB business promotion, better serve the real economy, facilitate the overseas use of RMB by foreign economic and trade enterprises, and cultivate and expand the local RMB market. Further expand the coverage of CIPS system participants, continuously improve the RMB clearing network, cooperate with CIPS companies to promote cross-border RMB clearing services such as cross-border innovative service terminals (CISD) and payment lenses, and provide efficient and convenient RMB clearing services for domestic and foreign enterprises and financial institutions.
Provide RMB internationalization market information analysis services. Develop research reports with policy and market value aimed at major issues and market hotspots of RMB internationalization, provide intellectual support for the development of RMB internationalization, and provide comprehensive and high-quality services for global customers to understand and participate in RMB internationalization business. The "White Paper on RMB Internationalization" has been issued for the 11th consecutive year, utilizing Bank of China's professional research in the field of RMB internationalization to provide beneficial reference for various market entities.