China to promote cross-border use of RMB

China will further facilitate cross-border use of the renminbi by promoting pilot programs to boost trade and investment, making it possible for more foreign central banks and monetary authorities to hold the currency as a reserve asset, Report says.

After a decade of the currency's internationalization, Chinese policymakers expect that the allocation of RMB assets by foreign investors will be more accessible, and domestic financial market transactions by foreign investors will keep overgrowing.

Cross-border use of the RMB has sustained rapid progress and maintained robust growth this year, even amid the COVID-19 pandemic impact. It has severely hit global trade, finance, and the economy, analysts said, commenting on the statement released late on Friday by the People's Bank of China.

More than 70 central banks and monetary authorities worldwide have incorporated the RMB into their foreign exchange reserves so far, according to the PBOC's 2020 RMB Internationalization Report.

The central bank promised to steadily push forward RMB internationalization based on market forces and the orientation of better serving the real economy.

"We expect more foreign traders to join crude oil, iron ore, and other commodity futures trading and use the RMB more frequently in real commodity trading. More varieties of RMB-denominated financial products will be provided," it added.