Global status of RMB sharply enhanced:

After the World War II, the US has been promoting US Dollars as International Currency, especially the Oil prices were fixed and traded in Dollars, giving an additional edged to American Economy. All major commodities, including Gold was traded in Dollars. All countries were using US Dollars for imports/ Exports. US dollar was dominating global financial markets.

But sooner, the US has been politicizing Dollars to coerce and pressurise its adversaries. Dollars was used as a tool to achieve American political goals. The world was fed-up of Dollar hegemony and American Hegemony. But, after the no country was to challenge the American in the Unipo0lar world for the last three decades almost.

Thanks to revival of Russia and rise of China, which checked American evil practices and counter balanced to geopolitics. Emergence of regional blocks like SCO and BRICS played vital role, especially the exponentially growing BRICS’s membership, enabled to use alternate currency, weakening US Dollars in the international trader.

China played most significant role in ending US dollar’s monopoly. Below is a report published in Xinhua News, regarding strengthening of RMB in global trade;

The international status of the Chinese RMB has been further enhanced and the share of RMB in global cross-border settlements and various foreign exchange reserves has risen, said a report released on Monday.

SWIFT data shows that the share of RMB in global payments reached 4.6 percent in November 2023, a record high, surpassing the Japanese yen to become the fourth most-used payment currency worldwide, according to the China Financial Policy Report 2024.

The report was jointly released by the PBC School of Finance of Tsinghua University and the Financial Policy Research Center of the Chinese Academy of Social Sciences in Hangzhou, capital of east China’s Zhejiang Province.

Beyond activities involving Chinese economic entities, RMB has started to be used as a third-party currency, said Ding Zhijie, releaser of the report and director of the Foreign Exchange Research Center of the State Administration of Foreign Exchange.

At present, foreign investors currently hold about 10 trillion yuan (1.406 trillion U.S. dollars) in domestic assets, Ding added.

The report summarized China’s efforts to build a modern financial system with Chinese characteristics and push forward the high-quality development of the country’s financial industry.

With the continuous deepening of financial reform, China’s financial system, markets, and regulation have been further improved, making China a major global financial player, the report noted.

Ding also hailed the growing competitiveness of China’s financial institutions.

“Five Chinese banks are listed among the 29 global systemically important banks. Their scores have increased year by year, reflecting the rapid development of Chinese banks and their steady improvement of global competitiveness,” said Ding.

Meanwhile, China’s status as an international financial centre is on the rise, Ding noted, adding that Hong Kong, Shanghai, Beijing, and Shenzhen remain among the top 20 global financial centres.

Reference Link:- https://english.news.cn/20240528/3c74aa6baf6c4332803bde29f4d9eb14/c.html