+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

The 2020 - 2021 Renminbi Internationalisation Policy and Progress Report

  • PDF Icon


  • 25 Pages
  • November 2021
  • Region: Global
  • China Banking News
  • ID: 5504851

The 2020-2021 Renminbi Internationalisation Policy and Progress Report provides an overview of China’s ongoing efforts to drive greater offshore usage and internationalisation of its official currency in 2020 and 2021, based upon official data and policy statements made by the Chinese central bank (PBOC). 

Renminbi internationalisation has continued to make major strides since the start of 2020, despite the severe adverse impacts of the COVID-19 pandemic upon the global economy.

These impacts included worsening trade relation between China and the United States, severe restrictions on international travel, and critical supply chain disruptions. 

Internationalisation of the renminbi was nonetheless abetted by a range of factors, including China’s ongoing commitment to financial opening and liberalisation, as well as its advance recovery from the COVID-19 pandemic. 

China’s successful containment of COVID-19 made it the only major economy to post positive growth in 2020, and enabled PBOC to retain normal monetary policy settings and positive interest rates. 

This heightened the appeal of renminbi financial assets during a period when central banks around the globe were unleashing liquidity and slashing interest rates.

Table of Contents

1. Executive Summary2. Background
3. Renminbi Internationalisation Policy in 2020 and 2021
  • Optimisation of cross-border renminbi operations policy
  • Driving bidirectional opening of capital markets
  • Refinement of renminbi exchange rate formation mechanisms
  • Launch of cross-border wealth management connect trials
  • Pricing and settlement of commodities in the renminbi
4. Key Events in Renminbi Internationalisation in 2020 and 2021
5. Renminbi Internationalisation Policy Going Forward
  • Current account renminbi cross-border usage will further expand
  • Renminbi cross-border investment and financing channels will further broaden
  • Bilateral monetary cooperation will continue to steadily develop.
6. Existing Renminbi Internationalisation Mechanisms
  • The Cross-border Inter-Bank Payments System
  • Mechanisms for offshore settlement
  • Bilateral currency settlement
  • Bilateral currency swaps
  • Central bank bill issuance via Hong Kong
7. Renminbi Internationalisation Outcomes in 2020 and 2021
  • Renminbi internationalisation indicators in 2020 - 2021
  • Cross-border usage of the renminbi in 2020 and 2021
  • The current account
  • The capital account
  • Direct Investment
  • Cross-border renminbi cash pools
  • Panda bonds
  • Securities investment
  • Active allocation by offshore entities to renminbi financial assets
  • The renminbi as an international reserve currency
  • Offshore renminbi deposits
  • Offshore renminbi financing
  • Global renminbi forex transactions and payments
  • Offshore renminbi settlement
8. Leading Mainland Chinese Cities for Renminbi Cross-border Receipts and Payments in 20209. Leading Countries and Regions outside Mainland China for Renminbi Cross-border Receipts and Payments in 202010. Glossary



Companies Mentioned

A selection of companies mentioned in this report includes:

  • Standard Chartered
  • The Bank of China
  • The Hong Kong Monetary Authority 
  • The People’s Bank of China
  • The Reserve Bank of Australia 


Briefings and reports are developed by a research team of analysts who are bilingual in Mandarin Chinese and English, and possess a wealth of experience in the fields of media, finance and economics. 

The publisher reviews and analyses Mandarin-language reports from over one hundred open-access and subscription-based news sources situated based in both China and other parts of the world, in order to obtain timely and detailed information on specific research themes. 

They then review and scrutinise Chinese-language primary documentation produced by both private actors and government authorities within China, including financial reports, press releases, regulatory directives and administrative provisions, in order to substantiate and verify our initial findings and provide further detail.

The team collates, analyses and summarises the relevant findings of the research to produce intelligence products that furnish readers with the vital essentials of the key themes in question, as well as critical details and nuances where necessary to heighten understanding and provide insight."