During the 14th Five-Year Plan period, the People’s Bank of China (PBOC) has continued to deepen financial reform and advance high-standard opening-up, promoting the internationalization of the RMB in a prudent and orderly manner. It has focused on improving the quality of RMB internationalization and expanding the use of RMB in cross-border transactions, leading to a rise in RMB’s global status and influence. In a recent interview with Financial News, the head of the PBOC’s Macroprudential Policy Bureau provided an in-depth overview of the PBOC’s concrete efforts and notable achievements in advancing RMB internationalization during this period.
Financial News: Could you please elaborate on the achievements the PBOC has made in promoting the cross-border and international use of RMB during the 14th Five-Year Plan period?
Head of the Macroprudential Policy Bureau of the PBOC: The Outline of the 14th Five-Year Plan proposes to “steadily promote RMB internationalization in a prudent manner, adhere to a market-driven approach and the independent choices of enterprises, and foster a new type of mutually beneficial cooperation based on the free use of RMB.” In line with the arrangements of the Communist Party of China (CPC) Central Committee and the State Council and following the principles of market orientation and mutual benefit, the PBOC has sought to better support the real economy and facilitate trade and investment by providing business entities with more currency options for cross-border transactions. At the press conference on achievements in China’s financial sector during the 14th Five-Year Plan period held by the State Council Information Office on September 22, PBOC Governor Pan Gongsheng noted that “from a longer-term perspective, the steady rise of the RMB’s international status has been a key feature of the international monetary system’s evolution over the past 20 years.” At present, RMB is the largest settlement currency for China’s cross-border receipts and payments, the world’s second most used currency in trade financing, and the third most used in payments. It also ranks third by weight in the Special Drawing Right (SDR) basket of the International Monetary Fund (IMF). The main achievements can be summarized as follows:
First, the use of RMB in cross-border trade as well as investment and financing has expanded significantly, greatly strengthening its role in supporting the real economy. The PBOC has continued to refine its policy framework and advance pilot programs for high-level trade and investment facilitation. As a result, the network effect of the RMB’s international use has gradually emerged. In H1 2025, cross-border RMB receipts and payments totaled RMB35 trillion, up 14 percent year on year. Of this, RMB6.4 trillion was related to trade in goods, accounting for 28 percent of total cross-border transactions in domestic and foreign currencies, both hitting record highs. These figures highlight that, as exchange rate flexibility increases, more enterprises are choosing the RMB for cross-border settlements to hedge exchange rate risks and reduce financial costs.
Second, China’s financial market has continued to open steadily, offshore RMB markets have developed in a sound manner, and RMB assets have become increasingly attractive worldwide. Overseas entities now hold more than RMB10 trillion in domestic RMB financial assets, and central banks or monetary authorities in over 80 countries and regions have included the RMB in their foreign exchange reserves. RMB bonds and stocks have also been incorporated into major global indices. Financial market connectivity between the Chinese mainland and Hong Kong has deepened further, with Hong Kong serving as a core hub for offshore RMB business, while London, Singapore, and Dubai have each developed offshore RMB markets with distinctive features. Total RMB deposits in major offshore markets have reached RMB1.6 trillion, and the outstanding amount of offshore RMB bonds as well as panda bonds issued by overseas institutions totals about RMB2 trillion.
Third, the global RMB payment and clearing network has continued to improve, making it increasingly convenient to use the RMB. After years of efforts, the PBOC has basically established a cross-border RMB payment and clearing network that features multiple channels and wide coverage, comprising the Cross-border Interbank Payment System (CIPS), the intra-bank cross-border system of commercial banks, and the cross-border retail payment networks established by non-bank payment institutions such as China UnionPay, Tenpay, and Alipay. CIPS now has 1,729 participants, serving over 5,000 corporate banking institutions across 189 countries and regions on six continents. Cross-border e-CNY transactions, as well as the interlinkage of domestic and overseas fast payment systems and QR code networks, have made steady progress, steadily improving cross-border payment efficiency. The RMB clearing network has also expanded rapidly, with clearing banks now authorized in 33 countries and regions, covering major international financial centers.
Fourth, international monetary and financial cooperation has deepened across the board, and the RMB plays an increasingly important role in the global financial stability framework. Globally, the RMB has been included in the IMF’s SDR basket with a weight of 12.28 percent, ranking third after the US dollar and the euro. Regionally, under the Chiang Mai Initiative Multilateralization, a new Rapid Financing Facility funded in freely usable currencies such as the RMB has been established, further strengthening the regional financial safety net. Bilaterally, the PBOC has signed currency swap agreements with central banks or monetary authorities of 32 countries and regions, which have played a key role in maintaining global financial stability and promoting the cross-border use of RMB.
Financial News: In recent years, the size and coverage of the PBOC’s currency swaps with other central banks have continued to expand. What role have these swaps played?
Head of the Macroprudential Policy Bureau of the PBOC: Currency swaps are an important form of cooperation between central banks worldwide. Based on mutual trust, two central banks may exchange their currencies under agreed terms and swap them back at maturity, essentially creating a collateralized financing mechanism. To date, the PBOC has signed currency swap agreements totaling approximately RMB4.5 trillion with central banks or monetary authorities of 32 countries and regions, including the European Central Bank, as well as those of New Zealand, South Korea, Indonesia, Brazil, and Saudi Arabia, covering major economies across six continents.
From both global and domestic perspectives, currency swaps serve three primary functions. First, they provide liquidity to financial markets and help maintain market stability. Following the 2008 global financial crisis, major currencies experienced liquidity shortages. In response, many central banks and monetary authorities actively sought to establish swap arrangements with the PBOC to secure liquidity support. This commitment to mutual liquidity support has played a crucial role in maintaining global financial stability. Currently, the currency swap network established by the PBOC has become an integral part of the global financial safety net. Second, currency swaps support the real economy. Through commercial banks, a country’s central bank can channel swap funds to enterprises for trade and investment, thereby facilitating bilateral economic exchanges. Third, currency swaps are a key component of financial cooperation between countries. They encourage financial institutions in both countries to provide bilateral local currency settlement services, helping enterprises reduce exchange costs and hedge exchange rate risks in cross-border transactions.
Looking ahead, the PBOC will continue to expand the scope of currency swap cooperation in an orderly manner, with a focus on deepening partnerships with countries and regions that have close trade and economic ties with China. The goal is to make better use of swap funds, enhance liquidity supply, and further facilitate trade and investment.
Financial News: Moving forward, what will the PBOC do to promote the broader use of RMB in international trade, investment, and financing?
Head of the Macroprudential Policy Bureau of the PBOC: The cross-border use of RMB is a gradual and natural process. As the international monetary system diversifies more rapidly and the endogenous demand of business entities for the RMB grows, the PBOC, in line with the arrangements of the CPC Central Committee and the State Council, will continue to foster a more favorable environment for both domestic and overseas entities to hold and use the RMB. Our efforts will focus on the following areas:
First, we will better support the real economy and facilitate trade and investment. The PBOC will strengthen high-quality policy support by reviewing, optimizing, and integrating policies related to RMB settlement in cross-border trade and investment, improving policies for managing funds of domestic enterprises listed overseas, and optimizing those on cash pooling for multinational corporations. We will guide commercial banks to enhance their cross-border financial services, incorporate more eligible enterprises into the list of quality enterprises, streamline business procedures, and improve the efficiency of RMB settlement.
Second, we will further enhance the RMB’s role as a financing currency. We will continue refining policies and instruments that support RMB financing, strengthen the role of the currency swap mechanism between central banks in promoting cross-border RMB use, improve management of cross-border interbank RMB financing, and encourage more qualified overseas institutions to issue panda bonds in China.
Third, we will advance the high-level two-way opening-up of financial markets. The PBOC will improve the transparency, rule-based governance, and predictability of the domestic financial market, boost transaction efficiency and liquidity, and consolidate investment channels where appropriate to attract more overseas institutions to invest in the domestic market in an orderly manner. We will also support Shanghai’s development as an international financial center, positioning it as a hub for RMB financial asset allocation and risk management.
Fourth, we will support the development of offshore RMB markets. The PBOC will improve cross-border RMB liquidity supply arrangements, optimize the network of clearing banks, and maintain robust policy support for clearing banks, including liquidity provisions. We will also support domestic and overseas institutions in issuing and trading RMB assets in overseas markets, sustain regular issuance of central bank bills, and expand liquidity and risk management tools. Furthermore, we aim to consolidate and elevate Hong Kong’s position as an international financial center and a hub for offshore RMB business.
