This undated photo shows renminbi. The issuance of Shenzhen's "dim sum" bond will broaden funding channels for local governments, promote bond issuance innovation and advance the orderly opening-up of the government bond market. (PHOTO / IC)
BEIJING – Financial institutions abroad have greater demand for assets denominated in the Chinese currency renminbi, an annual survey by the Bank of China showed.
Nearly 80 percent of the surveyed companies, both at home and abroad, said that they would continue expanding the use of the Chinese currency in cross-border settlements
Among all the overseas financial institutions surveyed last year, 61.3 percent said that they would increase their holdings of RMB-denominated assets. The proportion expanded by 9 percentage points compared with the 2020 survey.
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Nearly 80 percent of the surveyed companies, both at home and abroad, said that they would continue expanding the use of the Chinese currency in cross-border settlements, while 68 percent of foreign companies said that they would prefer RMB-denominated capital in trade with China, according to the survey.
Businesses worldwide have higher expectations for the RMB's role as an international currency, with 52 percent of surveyed industrial and commercial firms envisioning the RMB to have a global position near that of the US dollar and the euro in the next 10 years.
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Covering more than 3,400 businesses and institutions worldwide, the survey has been released annually since 2013.